The Ownership Effect Inquiry: What Does the Evidence Tell Us?
A recent study provides evidence to support the social and economic benefits of Employee Ownership.
- 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.