Employee ownership: Shaping ethical futures

The recent Employee Ownership Conference held at the Arena and Convention Centre (ACC) in Liverpool shed light on why an increasing number of businesses view employee ownership as the future

CREDIT: This is an edited version of an article that originally appeared on SME Today

Drawing over 700 delegates from the employee-owned (EO) sector, including business leaders, employee-owners, and professional advisors, the conference showcased keynote talks, panel discussions, networking, and the Employee Ownership Awards celebration dinner.

The rising tide of employee ownership

Chris Maslin, an authority on employee-owned organisations, heralds the infancy of employee ownership in the UK, currently contributing 4% of the annual UK GDP. A shift is underway, with businesses exploring ways to align with customers’ ethical concerns and fairly reward employees beyond mere wages.

“Employee ownership is turning the tide on the traditional model of a ‘face’ at the top of a business who has done very well out of it while not adequately rewarding the employees who helped get them there,” said Chris. “Everyone involved deserves credit for building a business, even though it may just be a business owner in the very early days. Employee ownership is the way to do that.”

The essence of employee ownership

Employee ownership signifies an organisation where all employees hold a significant stake in the business, both financially (through shares) and in decision-making (employee engagement). The exemplar of this model is John Lewis, the largest employee-owned business in Britain, with 80,000 “partners” who collectively own a stake in the business.

Chris Maslin’s journey

Chris Maslin, founder of the accountancy firm Maslins, took a progressive step towards employee ownership. In 2021, he transferred most of Maslins’ shares to an employee ownership trust (EOT). The success of this transition inspired him to establish Go EO, dedicated to helping businesses embrace the employee ownership model.

“It’s only in the last decade that legislation has started to make the employee ownership model more accessible and mainstream,” says Chris. “I’m keen to see how businesses owned this way develop over the coming decades. Interestingly, it’s also what the younger members of the workforce who will have more and more say over the next few years are demanding.”

The generational shift

Research indicates that Generation Z, constituting around 20% of the global workforce, places a premium on a healthy work-life balance and a sense of purpose at work. A ThoughtExchange report revealed that 96% of Gen Z consider feeling valued at work crucial, with corporate ethics ranking high in their decision-making around workplace preferences.

The bright future of employee ownership

The Employee Ownership Association asserts that EO companies not only treat employees more equitably but are also more successful, competitive, and sustainable. They exhibit a stronger commitment to corporate social responsibility and community involvement.

Chris Maslin concludes, “This is a direct link back to showing the value of EO workplaces. I predict that so many more businesses will transfer over to this model in the near future and this kind of ownership will become much more commonplace.”

As the employee ownership movement gains momentum, businesses are poised to redefine success through a lens of shared ownership, ethical practices, and inclusive growth.