i) Benefits for business
Posted: Wed Feb 19, 2025 7:45 am
There are many benefits to employee ownership through EOTs, but for simplicity I have divided them into three main categories.
The UK government's promotion of employee ownership stems from a core belief in its power to foster a resilient economy. This is based on the Nuttall Review's claim that motivating employees increases business performance. Key findings include:
Low absenteeism
Happier workforce and increased staff well-being
Lower staff turnover
Rapid employment growth
Increase productivity
The EOT model speeds up employee engagement, typically resulting in increased guatemala mobile database profits and reduced costs in areas such as recruitment. It also improves the resilience of the company, better equipped to handle challenging market conditions because employees now have a direct stake in the outcome, or an ‘ownership mindset’.
Selling to employees through EOT means that the current culture, values and way of operating the business can be preserved. Conversely, external third-parties may seek to integrate or change the business to fit their own strategy or corporate culture – potentially putting existing employees at risk of being forced into rationalisation or contract renegotiation exercises. This continuity is particularly valuable for SMEs where the founding owners have played a key role in the governance, strategy and overall trajectory of the company from the outset. Furthermore, many SMEs do not have a comprehensive succession plan; EOT planning can often act as a timely catalyst to undertake succession planning, preparing the next generation of leadership for their roles.
The UK government's promotion of employee ownership stems from a core belief in its power to foster a resilient economy. This is based on the Nuttall Review's claim that motivating employees increases business performance. Key findings include:
Low absenteeism
Happier workforce and increased staff well-being
Lower staff turnover
Rapid employment growth
Increase productivity
The EOT model speeds up employee engagement, typically resulting in increased guatemala mobile database profits and reduced costs in areas such as recruitment. It also improves the resilience of the company, better equipped to handle challenging market conditions because employees now have a direct stake in the outcome, or an ‘ownership mindset’.
Selling to employees through EOT means that the current culture, values and way of operating the business can be preserved. Conversely, external third-parties may seek to integrate or change the business to fit their own strategy or corporate culture – potentially putting existing employees at risk of being forced into rationalisation or contract renegotiation exercises. This continuity is particularly valuable for SMEs where the founding owners have played a key role in the governance, strategy and overall trajectory of the company from the outset. Furthermore, many SMEs do not have a comprehensive succession plan; EOT planning can often act as a timely catalyst to undertake succession planning, preparing the next generation of leadership for their roles.