AS EVIDENCE GROWS OF ITS POSITIVE IMPACT, MORE COMPANIES ARE CHOOSING EMPLOYEE OWNERSHIP
Today we’re celebrating Employee Ownership Day #EODay, which aims to raise awareness of the benefits of employee ownership. We’re looking at new research highlighting its positive impact and giving a shout out to some of our clients that have recently become employee-owned.
Employee ownership is good both for businesses and people
Researchers from St. Andrews University report that during the pandemic employee-owned companies have out-performed their non-employee owned peers on a number of measures. Over 50% of employee-owned companies have grown, whereas approximately 80% of other companies saw declining revenues. The overall picture is one in which employee-owned companies have shown “financial and social resilience”:
Employee-owned Scottish firms give a much needed boost to the Scottish economy
Research from the USA, focussing on the experience of employee-owners, shows that during the pandemic they have experienced less financial adversity, more stable jobs and better housing security and retirement savings. Employees of companies that are not employee-owned have suffered job losses at six times the rate of employees of other companies:
US employee-owned businesses faced fewer economic hardships during the pandemic
Newly employee-owned companies
In the first half of 2021, we’ve helped a number of companies become employee-owned, including:
Medical communications specialist Synergy Vision
Advertising agency Lavery Rowe
Specialist retailer of camera equipment London Camera Exchange
One of countries most successful steelwork contractors Elland Steel Structures
As governments in the UK, USA and other ask how they can build an economy which works for everyone, this research adds more to the case for increased employee ownership. Jared Bernstein, a member of President Biden’s White House Council of Economic Advisers, has recently urged legislators to find new ways to encourage the growth of employee ownership.
You can find out more about #EODay here
