Unlocking the Benefits of Employee Ownership Businesses
What are the reasons for transitioning to an Employee Ownership Trust (EOT)? Where do the benefits lie? What are the advantages of working for an EOT? With Soho-based executive support recruiter Bain and Gray announcing its shift to an Employee Ownership Trust (EOT), we lean into the advantage of creating a springboard for future growth through staff stewardship of a business, highlighting how they can transform workplaces and contribute to broader economic well-being.
Enhanced Employee Engagement and Satisfaction:
An immediate benefit of employee ownership lies with the positive impact it has on workforce morale and engagement. As Bain and Gray stated, “the new status complements the organisation’s collaborative way of working and builds on the company culture of trust and inclusion. The EOT gives Bain and Gray’s twenty-strong employees a stake in the business, affording them a greater say in how the company is run, and entitling them to an annual share of profits.”
With employees staked in the company, a stronger sense of investment is founded, leading to potential lower turnover rates and higher levels of employee engagement. Alice Stevenson, an employee with an eight year tenure at Bain and Gray, rising from an Office Manager job to Managing Consultant, says: “it is such an exciting time for the business, and for me personally. The EOT effectively gives us shares in a company I love and a say in how it is run, which is both motivating and rewarding. We all work hard, and I can’t wait to see what the future holds for our tight-knit organisation.”
Improved Business Performance:
In terms of business performance, assuming an EOT may lead to improved productivity, innovation, and profitability. A shared sense of responsibility encourages employees to think like owners, ameliorating strong decision-making and the adoption of a more entrepreneurial approach to problem-solving.
Furthermore, with employees directly benefiting from the company's success, there's an inherent incentive to work efficiently and effectively.
Wealth Distribution and Reduction in Inequality:
Employee ownership contributes to a more equitable distribution of wealth. By providing employees with shares or options in the company, these businesses help build personal wealth for individuals who might not otherwise have such opportunities.
This model can be particularly impactful for lower and middle-income workers, contributing to reduced income inequality. As wealth is more evenly distributed among those who contribute to a company's success, employee ownership can play a crucial role in addressing economic disparities.
The EOT underlines Bain and Gray’s core values of trust, integrity, equity, accountability, and inclusion. Commenting on the EOT, Managing Director, Emily Bain says: “choosing to create an EOT was a no-brainer: as co-founders we continue our active involvement in the company, while ensuring staff help steer our present and future. In doing so, we are creating a seamless strategy for succession”.
She continues: “with a reputation for staff retention and longevity, and despite other approaches for the business, we felt that passing on the company to our team was exactly the right thing to do. We are securing the future stability of Bain and Gray in the hands of a highly competent team”.
So, Why Work for an Employee Ownership Trust?
For business support professionals, such as those in PA jobs and EA roles, working within an EOT can offer a unique set of benefits that not only enhances your professional standing, but also contributes to personal growth and financial well-being. Alongside the foundational benefits of job satisfaction and engagement that come from being part of an employee-owned company, you’ll receive:
• The financial perks of profit-sharing schemes or share ownership plans, offering the opportunity to build wealth beyond your regular salary.
• An emphasis placed on employee development and training: for PAs and EAs, this leads to further possibilities for professional growth, including access to training programs, workshops, and courses relevant to the role in hand. The collaborative nature of EOTs allows for greater exposure to different aspects of the business, enhancing skills, expertise and knowledge base, with a focus on continuous learning ensuring that those in the business support landscape remain at the forefront of industry best practices.
• Open lines of communication and transparency across all levels of the organisation: for PAs and EAs, who often act as intermediaries between executives and other staff members, working in such an environment can be particularly beneficial. Working for an EOT enables business support professionals to perform their roles more effectively, with access to information and insights that might otherwise be siloed. This openness also contributes to a more cohesive team dynamic, where everyone's contributions are valued and recognised.
• A sense of community: finally, working for an EOT can strengthen the sense of community and belonging among employees. Business support professionals often work closely with various departments and teams, and being part of an employee-owned company enhances this experience by fostering a culture of mutual respect and collaboration. The shared goal of contributing to the company's success creates a strong bond among employees, making the workplace more enjoyable and supportive.
Reflecting on these advantages, it's clear that employee ownership offers a compelling alternative to traditional business models. By aligning the interests of employees with those of the business, this approach creates a win-win scenario that boosts productivity, fosters innovation, and promotes a fairer economy.
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