5 Well-Known Employee-Owned Companies

Since the Government introduced the Employee Ownership Trust (EOT) business structure in 2014 there has been a rapid increase in businesses adopting this model. There are now nearly 500 EOTs in the UK, although, in truth, many organisations had a comparable business structure prior to 2014, at least in terms of principle and ethos.

EOTs are designed to be more competitive and sustainable as a business model, with robust policies of employment and corporate responsibility. The EOT model can have a transformative impact on a business and is a progressive structure that transfers ownership of a business to its employees, via a legal entity known as a ‘Trust’. This promotes shared responsibility, collaboration and sustainability, and aims to empower employees to foster a culture of loyalty, commitment and inclusivity, which ultimately leads to increased motivation and productivity.

Of the 470 UK businesses currently formed as EOTs, we have highlighted five of the most well-known here, all of which share these same objectives and principles. But it is important to note that they all have very different stories and operate in very different sectors, but with one common aim; to protect and empower their people.

1. John Lewis – Retail

When the Government introduced EOTs in 2014, it was based on the historic John Lewis ownership model, where employees have been known as ‘partners’ since its pioneering introduction of employee ownership in 1929. John Lewis is now a vast retail organisation but was formed in 1864 as a small drapery shop. It is now the largest EOT in the UK with annual trading sales of £12.3Bn and with 80,000 partners, who each have part-ownership, share in profits and have a say in how the organisation is run.

2. Arup – Design and engineering

Founded in 1946, Arup is a global engineering and sustainable development consultancy. In the UK it has 6000 employees and 17 regional offices taking on 90 different technical specialisms. Arup UK collaborates on a local, national and international level and became an employee-owned business in 1977.

3. Cleantec Services – Health and hygiene

Cleantec Services is a commercial cleaning specialist formed in 2000 and operating nationwide. It has 1900 employees and operates in multiple industrial and commercial sectors. Cleantec became an EOT in 2021 and has formed an Employee Council as a key element of its business structure. All departments of the business are represented on the council, which meets regularly and whose members are elected every 12 months. The council feeds back to the main board and the board of trustees and has successfully empowered employees since the EOT was formed.

4. Medway Community Healthcare – Health and social care

Established as a social enterprise in 2011, Medway Community Healthcare now employs 1300 staff offering a wide range of community services, both NHS and non-NHS-related. The business has evolved way beyond the Medway area in Kent, and now operates across the health and social care sector in the UK. Its EOT structure has the aim of upholding standards of care in the community, is involved in developing future policies and also has an influence in how funds are re-invested by the business in local services.

5. PA Consultancy – Management consultants

PA Consultancy celebrates its 80^th anniversary in 2024, and did so by announcing a record turnover of £790million. Founded in London in 1943, PA is now the world’s leading management and technology consultancy, employing 4000 staff. From the UK, PA has now developed offices in 18 international locations, including Ireland, USA, the Nordic regions and the Netherlands. The PA Consultancy first began to adopt employee ownership in 1992 and is now in the top 10 biggest EOT organisations in the UK.

If you are inspired by these stories and believe your business can travel along this same path to success, then contact our team at Employee Ownership Advisor. We are specialists in the ethos, process and legal structure of EOTs through lived experience, and can advise you on where to start, what benefits you can expect and all the things you need to consider along the way. So contact our team today.