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Employee ownership booms to benefit Britain’s businesses
When an employee can be heard as well as seen is when a business inevitably reaps the benefits, which is why employee ownership is a highly protractible business model designed for the longevity of not only the retention of a firm’s workforce, but for the company as a whole.
According to the One Year On Report, there has been much progress made by way of supporting employees who wish to acquire ownership within their respective companies. Likewise, ‘investors have found it easier to identify and invest in UK businesses which have adopted employee ownership thanks to the new FTSE compliant UK Employee Ownership (EO) Index by Business Minister Jo Swinson.’
At a launch in London this month, the Business Minister declared the new index alongside the EO One Year On Report. Its appeal attracted potential investors to identify with ease the 69 UK public companies listed on the London Stock Exchange that contain employees with an issued share or capital holding of at least three per cent, other than the main board directors.
The Index exhibits the fact that in previous periods, the businesses that have adopted employee ownership frequently surpass the similar FTSE 100 and All-Share indices.
This is demonstrable by staff commitment, productivity, resilience and innovation.
Business Minister, Jo Swinson said: “As we build a stronger economy, there has never been a more important time to promote successful ways of running a business. Evidence shows that businesses that adopt the employee ownership model can be more profitable, create more jobs and are more resilient to economic shocks.”
Graeme Nuttall, the respective author of the Nuttall Review into Employee Ownership, announced at the launch event that a new ‘health check’ would be implemented to supervise and monitor the ongoing progress by the government and the EO sector towards making employee ownership a conventional and indeed sustainable part of the UK economy.
The report, comparable to the 2012 28 Nuttall Review measures the government’s and EO sector’s progress and found that steps forward had been made in the following areas:
- Raising awareness of employee ownership through the first national Employee Ownership Day on 4 July 2013
- The introduction of tax reliefs for businesses assuming the employment ownership model to the sum of £50 million from 2014-2015
- Help and guidance given to prospective businesses wishing to adopt the employee ownership model
Speaking in regards to the Nuttall Review, Minister Jo Swanson said: “The Nuttall review set us an ambitious challenge a year ago, but I am delighted to say the government and the sector have risen to meet it. We have made substantial progress in laying the foundations for a thriving and growing employee sector in the UK, but there is more to do to raise awareness.”