Beyond salary, what can businesses offer to entice new employees and make them stay?
Our director Sarah Deas explains how the employee ownership model, and the many benefits it brings, can be a great attraction for prospective employees and an effective means of inspiring, engaging and rewarding existing employees.
“Statistics consistently demonstrate that employee-owned businesses outperform their non EO counterparts in terms of increased productivity, higher levels of profitability and improved business resilience during times of recession. Feeling truly part of a business and sharing in its success undoubtedly helps employees feel engaged and valued. It attracts new talent and limits staff turnover. Clients also benefit from enhanced customer service.
“Interestingly, recent research reveals that millennials value many characteristics of the employee ownership business model, such as profit sharing and personal development, more than previous generations *.
“The employee ownership model is suited to any organisation, large or small, at any stage of its development and in many different sectors. Key employee-owned businesses in Scotland include: John Lewis Partnership, Aquascot and Novograf.
“Succession is often a catalyst for adopting employee ownership, as business owners look to exit and get a return on their investment but want to safeguard valued employees and ensure their business stays rooted in the local community.
“We are seeing a growth of interest in employee ownership year-on-year, keeping us on track for achieving our aspiration of a tenfold increase in employee-owned businesses in Scotland over a ten year period. Since 2009, the number of employee-owned businesses headquartered in Scotland has more than tripled.
“Support is available to businesses looking to adopt this model. This is delivered by specialist advisers who help owners decide on the best model of employee ownership for their businesses. They undertake a feasibility study and provide a written report outlining potential ownership structures, governance systems, engagement mechanisms and funding options. This allows owners to decide whether to proceed to implementation of an employee ownership structure.
“Should the EO Feasibility Study convince clients to proceed with a project then CDS can provide partial grant support for advisory work associated with the transition process.”
* (Source: ‘Busting the Millennial Myth – the Power of Purpose’, Fieldfisher and the eaga Trust).
If you would like to learn more about how employee ownership could benefit your business, please get in touch and have a chat with our expert advisers.