We’ve all seen the headlines: a snappy title announcing the fabulous news that a company has been bought out by its employees, accompanied by a photo of a smiling team, overjoyed with this marvellous turn of events.
But is this actually the case? What does employee ownership – otherwise known as EO – mean in practice? In this article we take a look at not just the pros and cons of employee ownership, but whether it is simply a PR exercise.
Let’s Present the Evidence
Firstly, let us look at some of the facts of EO: research has shown that there is tangible evidence that staff stay longer and make more money for the company if they have buy-in. That in itself negates the fact that the whole process is a staged PR exercise, and something that PR companies – whether Cheltenham PR or Chelmsford ones – would refute if called upon to promote the takeover.
In 2014 a number of tax perks were introduced which have proved a popular reason to head down this path for many companies and their employees.
Adding Up the Figures
It is often frowned upon if an EO business isn’t owned wholly by employees; however, many EO companies start out with a small percentage and increase this over the years. Making sure as a new EO that you employ the right PR company – check out www.targetgroup.co.uk – is essential to get the right message out about the EO journey.
The hard work really begins once a firm becomes employee-owned. It’s fabulous news, and you have made the best of promoting this to current and potential clients.
But there is still a lot of work to do and a lot of good news to impart over the years as an EO; from a leadership review through to HR, finance and the all-important communications, such foundations underpin a successful and emerging EO and, crucially, will help to build long-term foundations.
Ensuring that the organisation is transparent from day one is absolutely vital, as this will stop the grapevine and office whisperings from undermining the new regime; employees will feel valued and listened to if this is introduced and maintained from the beginning. Building in regular updates is essential too, especially in relation to financial security.