5 Things Your Employees Will (Probably) Say About Becoming An Employee-Owned Company

Every organisation is different and has unique circumstances in terms of its size, people, finances and operations, but any organisation that transitions to becoming an employee owned business shares some common characteristics. For many different businesses, the journey to becoming employee owned is conjoined in terms of mutual questions and concerns amongst the workforce, regardless of the type of organisation, but perhaps more importantly, the rewards for becoming employee owned also demonstrate some common ground.

Naturally, the tax-free profit sharing is widely recognised as a great benefit for the existing employees, but what other benefits are employees likely to refer to when talking about employee ownership? Here we list the five most common things employees will say about the journey to becoming employee owned, and their experiences of working in that structure afterwards.

1. “It’s good to feel part of something bigger”

Let’s face it, a lot of us are never going to own our own business, so employee ownership is as close as we are likely to get. But we can still enjoy the thrill of earning profits and gaining industry recognition with awards. Employee ownership means people keep a closer eye on company performance, and feel more responsible and accountable as a result of being part of a trust and having a vested interest. The performance of the business is now a personal thing, or at least more of a personal thing than it was, and people feel pride and are motivated by that.

2. “It was an attraction when joining the company”

When assessing the jobs market, many people have been attracted to a business because it is employee owned. The concept of employee ownership is a draw and provides the impression that the business really values its employees. With some employees at Ison Harrison – a Yorkshire legal firm who became an Employee Ownership Trust (EOT) in 2022 and who the Employee Ownership Advisor is linked to – this has been cited as the main reason why they joined the company.

3. “Not much has changed”

People generally fear change, although if it is managed well then many of us embrace it. Nevertheless, there can be apprehension about becoming employee owned, and yet the experience of many people is that nothing really changes when the transition happens, and that is the sign of a business that is becoming employee owned at the right time. If someone has always felt valued and always felt part of a team, and there isn’t an emphasis and dependence on one specific person (often the founder), that will continue after the business structure has changed. Graham Roberts is a specialist in personal injury claims at Ison Harrison, the first business in the country to achieve 100% employee ownership, and he comments “I’ve been at Ison Harrison for four years now and I believe the culture suits the people that work here. It’s very much about people, and the EOT means a continuation of that. The partners could have sold to another business which would have changed the culture, but this is a great culture and that’s going to continue”.

4. “I feel more security”

Stability is an important factor in many people enjoying their work, and becoming employee owned achieves that. People have said that it is nice to know there is a future for the company, that there is planning in place, and the future is not subject to people wanting to retire or sell up and leave, with the business going with them. Instead, the employees are in control and there is a collective will to succeed and prosper, and that gives people an important sense of security.

5. “We all get a say”

Inclusivity is an important thing for people to feel in any working circumstances, but employee ownership promotes this as a natural by-product. People have a say in how the business is run, what works and what doesn’t work, and can directly influence change. There is also a feeling that whatever you put in, you will get out. Inclusivity means that whether you are a receptionist, working in accounts, in the warehouse or in a senior management position, you have an equal voice and an equal say in how the business progresses.

These are the popular opinions of people who have gone through the experience of becoming employee owned, and at the Employee Ownership Advisor, we have real-time experience of this as employees of Ison Harrison, the first solicitors in the UK to become employee owned. So contact us today, and talk to us about your experiences, or your concerns, and we can help and support you through the process of becoming an EOT.