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Employee Ownership Day 2019

Happy Employee Ownership Day to all those celebrating today! We’re so happy to kick off the celebrations here at UMi and UMi, and we wanted to offer you a little bit more information on what exactly Employee Owned means.

Take a look at this information and statistics on Employee Ownership.

 

What is it?

In case you have never come across the term before, here’s a quick breakdown:

An employee ownership trust is a particular form of trust for the benefit of employees.  Unlike a conventional employee benefit trust, any benefit it confers on employees must include all of them (although a qualifying period of up to 12 months is allowed) on the same terms.

Employee owned companies span a range of sectors from manufacturing to marketing.  

What are the pros for employee ownership?

For a private company owner wishing to retire but looking for an alternative to a trade sale, an employee ownership trust is worth considering. It places the business in the hands of people who understand what makes it tick, have a strong personal commitment to its long-term success and are highly motivated by their ownership to make it thrive. There are also tax incentives involved, for the company owner who decides to sell the majority hold to the employees, and for the employees themselves (though the tax incentives should not be the only incentives).

Also reported by multiple companies and consumers that deal with EO companies, is the increase in the feeling of trust. Being ran and owned by the people working for your business helps create trust between colleagues, that then becomes palpable to customers.

This isn't just hypothetical optimism; research shows that employee owned companies outperform others in various areas, including growth and resilience. Not only does it enable the company to share its profits with the very people who put in the work to generate them, there's research to suggest that productivity is increased in employee owned companies too.

For more information on employee ownership visit their website.

Now time for some facts and figures. Take a look at these statistics, released by the Employee Ownership Association.

Kate Shaw
Article by Kate Shaw
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