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About Employee Ownership:
An Introduction
At conventional companies, employees have little real interest in the financial performance of the business. The result is that management must engage in a constant process of incentivizing, prodding, coaxing, threatening, cajoling and rigorously supervising in order to get employees to act in a way that achieves corporate goals.
Employee ownership changes that tired old dynamic. Employees who stand to profit if the company prospers begin to pay attention to corporate initiatives and company goals. As they get involved in the action, they become proactive players, bringing creativity and initiative to their work. hey begin to take pride in their company and its successes. They celebrate when the company does well – and suffer sleepless nights if the firm hits a rough patch. A spirit of entrepreneurship takes root throughout the organization. Management can spend less time playing overseer and more time planning growth initiatives. Small wonder, then, that the data collected by researchers consistently shows that companies with employee ownership are faster-growing and more profitable than their non-employee-owned competitors.
By definition, employee ownership means giving employees a financial stake in the fortunes of the company. But there are many ways to do this. Ultimately, each company must identify the approach that is the right path for them in light of their own unique conditions and circumstances.
The following sections will introduce you to the basic nuts and bolt of employee ownership. Armed with this understanding, you can begin to develop some of your own ideas about how your company can best take advantage of employee ownership to forge a stronger, higher performing venture.
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