24th June is Employee Ownership Day!

Employee Owned (“EO”) sector continues to boom as number of EO businesses passes 1,000

Further to our recent article on Employee Ownership Trusts, (“EOTs”), the Employee Ownership Association has today released sector statistics on what is officially “Employee Ownership Day.”

Today’s EOA report confirms that the number of EO businesses has now surpassed 1,000 – meaning it has more than doubled over the past three years.

Many companies are reporting that they looked to EO as a means of increasing resilience and supporting productivity in the face of the unprecedented challenges they have faced during the pandemic.

The key growth sectors in the EO arena are wide, and include professional services, construction, manufacturing, retail/wholesale and information/communications firms.

Today’s statistics, which are provided by the EOA’s research partners at the University of Leeds and the White Rose Centre for Employee Ownership, show the EO sector is delivering better business through giving employees a meaningful say.

The research considered a range of topics, including social responsibility, governance and employee engagement. Some of the key takeaway points are:

Social responsibility:

  • 71% of EO businesses have a statement of purpose, which includes making a positive contribution to society and the environment, while 96% say that looking after the workforce is a key measure of business success.

Governance matters:

  • 97% of EOBs have at least one form of employee governance – 74% have at least two

Employee engagement:

  • 90% of EO businesses report that employees have some or a lot of say in decisions on working conditions;
  • 85% have some or a lot of say in new working methods;
  • 75% of businesses share financial information at least several times a year and a further 21% share it at least annually.

Meanwhile, the index for the Top 50 EO Businesses by size, published today, shows a median productivity increase of 5.2%  – which is double the UK average for non EO businesses of 2.6%.

We are currently acting for a number of businesses who are on the EO journey and consulting with a number of others who are considering whether this is the right decision for them.

To find out how it might work for your business, please get in touch with one of our tax team via enquiries@pmm.co.uk.

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