What is Employee Ownership?

First of all, let us explain you what is employee ownership. One may say that it is when employees become co-entrepreneurs, co-owners. It is the old dream of the employee, who holds shares in a company and thus it motivates and people work productively. This form of ownership increases year by year. For example, there were only 2% of employee owned companies in Germany in 2012 versus 6% in 2017, in UK it is 30% versus 38% respectively. As for UK, forecast says that this number will be increasing by 10% annually.

Notable that employee owned companies deliver 5% of UK GDP. There are three forms of employee ownership:

  • Direct EO (individual share)
  • Indirect EO (collective share)
  • Mixed EO

Employee ownership is very popular among company owners who plan to sell business. As a result, employees make buy-outs of such companies and benefit from it. Employee owned firms are generally greater areas to work and show results as staff is treated better offering everybody a genuine business .

Here is a very interesting lecture with cases of employee ownership:

By the way, not all workers feel confident enough to do buy-outs and there are many reasons for that. This is why companies and organizations need to perform some educational programs to raise awareness. Worker buyouts may provide an appropriate, completely sustainable and competitive way to reach business goals. Also it makes workers less dependable on their paychecks as well as business owners become more confident about the future of their business.