How Employee Ownership Can Transform A Business
Employee ownership is a business model in which employees hold a stake in the company they work for. This can take various forms, including stock ownership, profit-sharing, and employee stock ownership plans (ESOPs).
Employee ownership can have transformative effects on a business, including increased productivity, improved employee engagement, and stronger company culture. In this article, we are going to explore what employee ownership is, why it can change company culture, and how investing in corporate training is key to its success.
What Is Employee Ownership
A business strategy called employee ownership provides workers with a stake in the organisation they work for. There are several methods to do this, including employee stock ownership schemes, profit-sharing arrangements, and stock ownership (ESOPs). An employee stock ownership plan (ESOP) involves a corporation setting up a trust to hold stock on behalf of the employees, who receive the stock as part of their salary or retirement plan. When an employee retires or leaves the company, they can access the stock that is kept in a separate account.
Businesses can benefit from employee ownership in a variety of ways, such as higher productivity, improved employee engagement, and a stronger corporate culture. Employees are inspired to work harder and take responsibility for their work when they have a stake in the company’s success.
A key example of an employee-owned company in the UK is the John Lewis Partnership, which is owned and run by its 73,000 employees. The partnership was founded in 1929 by John Spedan Lewis and has been employee-owned since 1950, when it became a public limited company.
Why Employee Ownership Can Change Company Culture
Employee ownership can completely change the culture of an organisation. By giving employees a stake in the company’s success, they are more likely to take pride in their work and invest more effort into it. Furthermore, employee ownership cultivates a sense of collaboration and team spirit among staff members, as they all have an interest in growing the business and achieving common goals.
It can also help to encourage a sense of loyalty among staff members, as they know they are invested in the company’s future. This leads to improved job satisfaction and reduced turnover, as employees will be more likely to stay with the company for longer periods of time.
How Investing In Corporate Training Is Key
In order for employee ownership to be successful, businesses must invest in corporate training. Training can help employees gain the skills and knowledge needed to effectively manage their stake in the company and take ownership of their work. Corporate training also helps to upskill existing members of staff and reduce the risk of valuable members of the team leaving and working elsewhere. When an employee feels valued and is given the opportunity to grow with a company, they are far less likely to seek employment with another business, even if it is for more money.
In fact, corporate training can also help businesses create a culture of employee ownership, as it can teach employees about the benefits of this business model and how it can change company culture. By investing in corporate training, businesses can ensure that employee ownership is successful and transformative.
KTAS specialises in employee training and professional development in the UK. We offer a range of courses and programs designed to equip employees with the skills and knowledge needed to take ownership of their work. We believe that investing in employee training is key to creating a culture of employee ownership, and we are dedicated to helping businesses achieve this goal. Contact us today to learn more about how KTAS can help transform your business.
