The idea behind employee ownership is to give both employers and employees a voice on running of a business. We are all well aware of how good communication can lead to a productive workforce.
Will I have to invest money?
It may involve you making a financial contribution to the company but this is not always necessary. Employee ownership is more about employees holding a significant influence over the running of the business and does not need to be financial power.
What will happen to my investment?
The investment will usually result in you holding shares in the business:
- Directly – A tax advantages share plan
- Indirectly – Where shares are held on behalf of the employee through an employee benefit trust
The idea behind employee ownership is to give all employees the chance to run the company.
Will I lose money if I retire or leave the company?
You will have the option to sell your shares or even transfer the shares to an ISA.
How do I put a proposal forward for employee ownership?
In the ideal situation a request should not come as a surprise to an employer. Employees should also do their homework before submitting a proposal to increase credibility.
The employer does not have to accept the proposal but it should be given serious thought. Hopefully between the employer and employee the proposal could be agreed. Employee ownership may not be right for all companies but the employer may give it some thought and this may give the employees greater involvement in the company.
I am a trade union representative, can I play a part?
Trade union representatives have a huge role to play, especially when it comes to:
- keeping the channels of communication open. Employees voice is vital, the union representatives have the experience of the members views and can pass them on
- The union representative can put forward the employees ownership, they have experience in the views of a wider group of employees
- As part of a group the proposal can be looked at more carefully and be discussed with management. Union representatives can bring fact finding to the table.
What is the success rate?
There is plenty of research to suggest that employee ownership when linked with employee engagement can offer a range of benefits to employees.
- Can lead to a higher productivity and profitability can help a company to survive in times of economic difficulty
- Can increase a companies sales growth
- Employees have a greater commitment, engagement and reduces absenteeism and staff turnover and accidents in the workplace