John Lewis | How do employee-ownership models work?

John Lewis announced last week that it was considering bringing an end to its 100% employee ownership. The move comes at a time of increased economic strain due to the cost-of-living crisis and marked shifts in the retail sector.

Sharon White, the chair at John Lewis, says this move would allow the retail giant to raise between £1bn and £2bn of new investment. The retail giant says plans are to sell a minority stake to an investor who embodies similar values, while employees will maintain having a majority of the company’s ownership.

But what even is an employee-owned business? And what implications does it have on employee experience?

Employee-owned businesses: why are they good for workers?

An employee ownership trust (EOT) was introduced by the government in 2014 as an extension of an employee benefit trust, their long-term plan was to encourage businesses to move to a model most famously employed by John Lewis. Since, over 700 organisations in the UK have adopted an EOT model.