Having a stake in the company keeps you focused, motivated, and engaged—just ask any business owner. This concept extends to employees, too. More companies are finding that employee ownership is a powerful way to boost engagement and accountability.

Employee ownership is still relatively uncommon and challenges the idea that only founders and managers think like owners. Yet, it’s proving to be a win-win, aligning employee interests with business success.

Ownership Models

Employee ownership trusts are a customizable option for companies looking to create a culture of ownership. Success depends on:

• A tailored structure that fits your business model and needs.
• Financing that enhances performance benefits.
• Strategic implementation and rollout.

This approach not only secures your company’s future but also empowers your workforce, turning ownership and business success into a shared venture.

How It Works

Employee ownership typically involves two key features:

• Employees benefit from the company’s success.
• Employee opinions matter regarding company operations.

This setup encourages an owner’s mindset at all levels. Even without a C-level title, employees with a stake in the business feel more invested and aligned with the company’s success.

Leaders considering this path often ask:

• How will the company perform under this structure?
• Who manages the business?
• Who makes vital decisions?

Answering these questions is essential, as employee-owned companies have a clear advantage in attracting and retaining talent.

The Benefits of Employee Ownership

Higher Compensation: Employee-owned firms pay workers roughly 33% more than non-employee-owned firms. Minority workers, in particular, experience substantial salary increases.

Higher Quality Jobs: Employee ownership is associated with better jobs, including access to flexible schedules, generous retirement plans, and childcare assistance. Employee-owners tend to stay longer, with a median tenure of 5.2 years compared to 3.4 years for non-owners.

Ownership Flywheel: Employees with a stake in the company’s success contribute more, improving overall performance and resilience. During economic downturns, employee-owned businesses laid off staff at a fraction of the rate seen in non-employee-owned firms.

Keys to a Successful Employee Ownership Structure

The Right Approach: Tailor your employee ownership plan to your unique business dynamics. An employee ownership trust can be tailored to match your business structure and incentivize desired outcomes.

The Right Financing Model: Align your program’s financing with ownership goals. Employees need to see and feel the benefits of ownership to stay motivated.

The Right Rollout Campaign: Implement the program with intention. Prepare employees to understand their roles and align with the new ownership structure. Working with experienced partners can ensure a smooth transition.

Is Ownership in Your Future?

Employee ownership goes beyond a mere structural change—it’s an investment in your company’s future. This model boosts engagement, accountability, and performance, propelling growth through collective effort. With this foundation, your business doesn’t just grow; it thrives.