The Semantics Say It All!
Employee Engagement & the Holy Grail

Reap the Benefits of Employee Ownership

“There is clear and unambiguous evidence to show that employee ownership, particularly when combined with meaningful employee participation, brings tangible economic benefits for companies. But these gains are not just important to individual businesses, they have a direct impact on the UK’s economic recovery.” Employee Ownership Association Impact Report March 2013

Nothing new there then! We have all known all along that employee ownership is the best way to build employee engagement and transform business results, and thus to improve the national economy. Nevertheless these words from the latest Employee Ownership Association report provide further evidence.

Of course you might say, “Well they would say that, wouldn’t they?” However, the evidence comes from the on-going Field Fisher Waterhouse comparison of the Employee Owned Index (EOI) with the FTSE All-Share Index. Illustrated by the chart below this shows that, although the EOI only grew at 3.4% compared to the All-Share Index’s 3.7% this past quarter - hardly surprising considering the stock market's record trading in the past few months – it has outperformed the latter over the past ten years by an average of 10%.

Employee Ownership FTSE comparison

In fact interest in employee ownership is growing to such an extent that

Xavier Rolet, Chief Executive Officer, London Stock Exchange Group PLC announced in July 2012 that the FTSE is going to create its own EOI as, “A new FTSE Employee Share Ownership Index will highlight some of the key benefits of encouraging employees to take an active interest in the future success of the companies in which they work. This new FTSE index will help raise awareness of how significant employee equity ownership can be advantageous for both companies and employees.”  

You can download the report yourself from the EOA website and it will give you much more information than I can in this blog. Just remember that, if you want to introduce employee ownership the Zealise employee ownership model can give you all these benefits, without shares and at a fraction of the administrative cost of traditional schemes.

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