Employee-ownership | The business model gaining momentum - but what are the benefits for employers?

More and more firms are seeing the benefits of employee-owned business models.

John Lewis famously considered changing its employee-owned model, which was met with much discontent from its own workforce and the general public. Since, the term ‘employee-owned’ is has taken common place in business discourse, but few know what it really means or what benefits it can have for an employer.

An employee-owned model is characterised by - you guessed it - a company’s employees owning shares in the business or the right to the value of shares in the firm.

The UK government introduced an Employee Ownership Trust (EOT) in 2014, with a long-term plan to incentivise companies to move to the model. Since, over 700 organisations in the UK have adopted this model.