Employee ownership numbers rocket

The UK’s employee ownership sector has more than doubled in size in the last three years, according to new research.

Employee owned businesses (EOBs*) in the UK have passed over 1,000, based on numbers provided by Professors Andrew Robinson (University of Leeds) and Andrew Pendleton (UNSW) of the White Rose Centre for Employee Ownership.

The latest data reinforces the evidence that EOBs are both commercially high performing and socially impactful.

The index for the Top 50 Employee Owned Businesses by size, compiled by RM2 and published by the Employee Ownership Association (EOA), shows a median productivity increase of 5.2%. That list includes household names like Arup, Mott Macdonald, John Lewis Partnership and Go Ape.

Detailed insights from the White Rose Centre data shows that by giving employees meaningful voice EOBs are driving a focus on business purpose and positive social as well as financial impact:

71% of EOBs have a statement of purpose, which includes making a positive contribution to society and the environment
96% say that looking after the workforce is a key measure of business success
97% of EOBs have at least one form of employee governance, 74% have at least two
90% of EOBs report that employees have some or a lot of say in decisions on working conditions
85% have some or a lot of say in new working methods
75% of businesses share financial information at least several times a year

Sectors seeing marked growth in EOBs include professional services, construction, manufacturing, retail and wholesale, and information and communications.

The EOA is calling for further cross-party support of the sector and its growth, as a model that can unlock the potential of individuals, businesses and the economy.

EOA Chief Executive James de le Vingne, said: “We are delighted to see the exceptional growth in the sector. It is together with our members and stakeholders that over the past 10 years we have supported the sector to grow. Now that we have this momentum, which indicates the relevance of the employee ownership model during a time where businesses are looking to create certainty and be more ethical in their approach to employees and the environment, we are asking how we can make sure the economy can reap the evidenced benefits of employee ownership at an even greater scale.”

Professor Andrew Robinson of the University of Leeds and White Rose Centre for Employee Ownership said: “Employee ownership is now in the mainstream of British business, thanks mainly to the phenomenal success of the Employee Ownership Trust. EOTs are so attractive because they enable business owners to step back without fear their company will be taken over by someone who does not value the culture, values and employees that are part of the business.”

* Companies are defined as employee owned businesses if there is an employee stake of at least 25% with no other single majority shareholder

Employee ownership numbers rocket

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