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The Ownership Effect Inquiry: What Does the Evidence Tell Us?

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The Ownership Effect Inquiry: What Does the Evidence Tell Us?

By , January 29, 2020
employee ownership UK study

A recent study provides evidence to support the social and economic benefits of Employee Ownership.

literature review published by CASS Business School, University of London, and Alliance Manchester Business School, University of Manchester, demonstrates the following:

  • Employee Ownership has a positive influence on the economic performance of firms.
  • Over the long run, firms with larger employee ownership stake demonstrate stronger performance.
  • The evidence of the positive influence of employee ownership on economic performance is stronger for smaller firms.
  • Studies lend support to the view that employee ownership influences productivity.
  • Employee ownership increases the ability of firms to deal with economic and business crises.
  • Evidence shows a positive influence of employee ownership on factors of employee engagement such as reward sharing, employee satisfaction, organisational commitment, identification with the organisation, job attitudes and motivation.
  • Employee ownership increases employee retention.

That’s quite an impressive list and provides multiple commercial reasons for business owners to look to introduce an Employee Share Ownership Plan (ESOP) to improve performance, retain and motivate employees and build a more resilient and sustainable business.

The evidence of the impact of employee ownership is overwhelmingly positive and is very relevant in the current economic climate.

If you like the sound of the above, get in touch to discuss the potential of an ESOP for your business with an Accredited Adviser.

The full report can be found via The Ownership Effect website here.

Craig West

Craig West

Managing Director | Succession Plus

Craig West is a strategic accountant who has over 20 years’ experience advising business owners. His background as a CPA in public practice, provided invaluable experience in the key issues of concern to business owners. Following 6 years of study to gain two masters degrees, Craig focused on Capital Gains Tax (CGT) for business sales advising on strategic management of tax issues. This experience formed a very strong view that business owners (and often their advisers) were unprepared and unaware of the steps required to prepare a business for exit.

Craig now acts as a strategic mentor for mid-market business owners and has written four critically acclaimed books on employee incentives, succession planning, asset protection and exit strategies. Craig has conducted numerous seminars and keynote presentations throughout Australia & internationally, including adviser education programs for the Institute of Chartered Accountants and CPA Australia.