Network ROI is proud to be one of more than 100 employee-owned (EO) businesses and advisors who contributed to the Ownership Effect inquiry – the results of which are published today (June 27th, 2018). There is a significant and valuable Ownership Dividend to be gained from more employee ownership in the UK economy.
The Ownership Dividend can deliver a more inclusive and productive economy in three ways:
Improving UK productivity – EO businesses are unlocking higher levels of performance and productivity powered by the increased personal endeavour and discretional efforts of employees acting with greater common purpose once they become employee-owners.
Resilient regional economies – EO provides a viable succession planning option for business owners looking to retire or sell. Selling the company to existing employees protects jobs and provides more opportunities within the local community.
PwC commissioned a ‘Family Business Survey’ which found that two-thirds of all SMEs – 3.4 million businesses – currently don’t have a succession plan in place. The survey also found that only 13% of the £519bn family business sector had a robust documented and communicated succession plan in place.
More engaged employees – via more inclusive, transparent and effective models of corporate governance and employee engagement which better involve, motivate, and financially reward individuals through their ownership stake and other incentives.
Deb Oxley, CEO of the Employee Ownership Association, said:
The ownership dividend benefits individual employees through the delivery of better work and greater financial opportunities and together, employees’ extra discretional effort as owners impacts positively on corporate performance. The ownership dividend also helps businesses to maintain an independent and sustainable model of ownership, and subsequently roots jobs and investment locally and more resiliently.
Employee engagement is historically low in the UK, a crucial factor to increased productivity, higher levels of happiness at work and job satisfaction. Employee ownership provides the perfect vehicle to deliver a more engaged workforce as EO businesses recognise success is driven by their most important asset – their people.
For the UK to benefit fully from the Ownership dividend we are calling on the government to:
- Invest in ownership capacity building that echoes Scotland’s successful scheme
- Create a National Strategy for Business Ownership
- UK regions creating trailblazing pilot projects focused on resilience and succession
Richard Marr, Chief Operating Officer of the The eaga Trust, said: With the employee-owned sector growing considerably over the past 5 years, and at a time when the economy is ready for ways to prepare for the challenges ahead, there is no better time to showcase the results of the most comprehensive study of employee ownership in the UK and look for support to truly realise the Ownership Dividend in the UK.
Employee Ownership in a post-Brexit Britain
As Britain prepares to take a new place on the World stage post-Brexit, it’s a critical time for the UK economy. Employee ownership offers a clear opportunity for UK companies to compete in global markets by delivering exceptional products and services.