EMPLOYEE OWNERSHIP
Employee ownership is win/win - there are distinct advantages to the employer, equalled by the advantages to the employee.
An employee owned sector in the economy benefits democracy, productivity and the fair distribution of wealth in the community through increasing the number of “owners” and enhancing the culture of “ownership and participation” in productive enterprises.
Employee ownership has a number of business advantages including:
- improving organisational performance
- providing an employee benefit, for the financial or tax advantages
- attracting or retaining staff
- transferring ownership in a business succession
Evidence from the available research, indicates that when employees own a stake in the business, the attitude of a company changes—and so does its bottom line.
There is more than one model of an employee owned private business.
The legal models adopted by those businesses introducing employee ownership include companies limited by shares, co-operatives and trust based ownership models.
Employee ownership is more widespread than is generally recognised. Few businesses tend to advertise their ownership structure. Even where the employee ownership stake is substantial, such businesses still have management structures to suit the size and organisation of the business. Good communication, empowerment and participation are critical to the success of the business.
The Mercury Centre can assist with devising options and strategies that provide the best outcome for the owners and the business. If you are considering employee ownership, we can assist you with a feasibility study.
The Mercury Centre is a member of the Australian Employee Ownership Association.