Employee ownership (EO) or management buy-outs (MBOs) are fast becoming
the preferred succession planning route for many forward-thinking
business owners. Thanks to the success of John Lewis (which is owned by
its employees, known as ‘Partners’), employee ownership is becoming a
common theme in business news.
Here I look at some of the advantages of employee ownership, for
employees, the company, and the exiting business owner.
Empowering employees through shared ownership Employees that have a
stake in the business are more engaged and more productive. They’re also
far more likely to be more innovative, more entrepreneurial and to drive
change from within. Employee ownership helps create a culture of
collective purpose and, as a result, employees take real pride in their
company. Employees who feel like they are an integral part of the
business are the best possible ambassadors for a brand or business.
Employee-owned companies consistently perform better Because they have
happier, more engaged employees, employee-owned firms tend to be more
productive and have higher staff retention rates.
To read the rest of this blog, which is based on an extract of Andrew
Gray’s book Do More of What You Love: The New Approach to Business
Succession Planning – go to here.