Employee Ownership – 2019 survey results from UK indicate sector growth
Based on recent research released by The White Rose Employee Ownership Centre, we can start to see some trends emerging in employee ownership. The data was collected from employee-owned companies in the UK, however, we are seeing similar patterns here in Australia.
Growth in ESOPs is accelerating internationally. Since 2014, over 60% of the companies in their database have become employee-owned (EO). In 2017, the number of EO firms increased by 17.2% and in 2018 by 18.5%.
The survey indicated there has also been growth in employee numbers. The Top 5 employees total has grown from 151,000 to 166,000 for over 6 years.
In addition, the research shows that productivity is on the rise. The mean increase in productivity of the Top 50 employee-owned companies was 6.2% in 2016, 7.6% in 2017, 9.7% in 2018 and 7.7% in 2019. This shows a set of businesses continuing to perform well, especially when compared to business as a whole (EO and non-EO).
More information on the survey completed this year can be viewed on the White Rose Employee Ownership Centre website. For details and advice about how to become an employee-owned company, get in touch with an accredited adviser in your state.