Working from home: working hard or hardly working?

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Working from home: working hard or hardly working?

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Working from home: working hard or hardly working?

By , March 19, 2020
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An Employee Share Plan can answer whether your staff are ‘working hard or hardly working’.

The academic research around Employee Share Ownership Plan’s (ESOP’s) and employee engagement, motivation and behaviour is quite clear and almost entirely positive in terms of behavioural change. One of our underlying principals in setting up an ESOP is to create a structure, culture and environment where employees think and act like business owners.

ESOP’s align business owners and employees, they both own shares in the company they work for and are both financially motivated to ensure things work. For all parties, the business, the founders/owners and the employees, it’s a WIN, WIN, WIN.

During the current COVID-19 outbreak – we have already seen instagram posts of employees “working” at the local pub with mates, going to the races and watching the latest series on Netflix – hardly working!

But when employees are owners and are vested in the outcome this simply doesn’t happen. I have already had several client stories of employees working all weekend to ensure staff can work from home without “breaking” IT systems, employees offering to reduce income/work hours etc to limit the impact and others looking at taking leave throughout the business whilst this dies down.

“What’s in it for me” can change to “what’s in it for us” – a focus on business outcomes for all concerned.

But it’s not just about an ESOP, employees need to better understand the business and how it makes money, and what drives performance and profit. Having ownership mindset training as part of the implementation is key to ensuring we have the right employees on board who have better understanding of business/financial principals, the right measurements (KPI’s) in place and the right incentive plans (ESOP) to drive behaviour towards those business outcomes which really drive performance.

For those clients who have this in place, we can easily measure improvements over several years but most importantly, the change and improvement is employee (not founder) driven.

In this type of environment, the least of your worries should be – are my employees working hard or hardly working?

Find out more about ownership mindset training so you can be better prepared for the COVID-19 outbreak and future outbreaks. 

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.