Putting employees first

Home Articles Industry News Putting employees first

During the Telegraph’s Festival of Business, John Lewis boss Sir Charlie Mayfield took to the stage determined to educate SME business leaders about the benefits of employee ownership. John Lewis Partnership is a perfect example of an employee ownership success story. Not only did it emerge from the recession less scarred than other retail empires, it also embodies values – equality, voice, inclusivity – that resonate with the public, particularly those who believe a new form of capitalism is needed following the 2008 financial crisis. It’s no surprise, then, that Sir Mayfield wants to share this path to success with other businesses. His aim is to increase the percentage of UK businesses that are employee-owned from 2% to an ambitious 10%,

Benefits derived from employee-ownership include improved employee engagement and a shared vision. Businesses operating an employee-ownership scheme report that staff appear much more interested in the company’s values and its public image. They want to know the business has a purpose beyond simply making money. Growth and sustainability become inseparable and the businesses trajectory is widened to include social as well as financial objectives.

Employee ownership could be considered the opposite to venture capitalism, which targets rapid growth and the acceleration of a company’s value following investment. Employee ownership often takes a more long-term approach, treating employees as assets as opposed to agents for profit maximization. Venture capitalism, which was in its zenith prior to the financial crash, remains a force in today’s economy. Yet the rise of employee ownership signals an interest to expanding the mechanics of capitalism and nature of business.

Interestingly a research recently published by Hays, ‘UK salary and Recruiting Trends’, reports that 38% of employees plan to move jobs within the next six months because of a lack of voice and involvement in the workplace, leading to pent up frustration. It raises the question whether this frustration would be felt if the employer operated an employee-ownership scheme, in which the worker played a crucial role in the development of the business.

For a legal understanding of employee shareholder status, including the impact of employee rights, please click on the link: employee shareholder status


Leave a Comment

Your email address will not be published.

Social Media

Latest Posts

RIDDOR Landing page v x

What are RIDDOR Regulations & What are Employer’s Responsibilities for RIDDOR Reportable Incidents?

Firstly many people ask what RIDDOR means, RIDDOR stands for reporting injuries diseases, and dangerous occurrences. Accidents at work can happen, even with the best …

An Employer Guide to Disciplinary Action and Police Investigations

An Employer’s Guide to Disciplinary Action and Police Investigations

Without wishing to delve too heavily into the current (alleged) political shenanigans, there has been much discussion about the announcement of an investigation by the …

covid vaccine 800x296 1

Your Complete Guide to Mandatory Covid-19 Vaccinations

Earlier this month the government announced that The Health and Social Care Act 2008 (Regulated Activities) Regulations 2014 amendment had been passed by Parliament. The …

working from home

Can employers adjust sick pay for unvaccinated workers?

Can employers adjust sick pay for unvaccinated workers? There has been a lot of media coverage recently about various companies who are reducing sick pay …

working from home

Working from home: FAQs for employers

This week the Prime Minister, Boris Johnson announced the implementation of Plan B of its COVID-19 winter response due to rising numbers of COVID-19 cases …

On Key

Related Posts