How to Make Employee Ownership Work for Your Business —Management Today

The Thought of Every Employee Working Together with a Shared Vision of Business Success is a Dream Situation for Companies.  Here’s How to Make it Happen. 

Gary Davie Friday at Management Today weighs in on how in 2012 the U.K. government (Management Today is UK-based) announced its support for employee ownership, recognizing its ability to promote long-term thinking and growth.  Since then, a number of legal changes and possible tax incentives have been announced, he writes, and  “they seem to be doing the trick”:  At last count, the number of employee-owned businesses in the UK is increasing by 10% year on year, according to the Employee Ownership Association, and these enterprises contribute more than £30bn to UK GDP each year.   For firms that may be interested in making the transition to employee ownership, Friday offers seven bits of advice. Here the list:  

 

• Be clear why you want to change
• Will you choose direct or indirect share ownership?
• Share buybacks will soon be easier
• HMRC scepticism
• Doing it in stages
• Achieving a fair valuation
• Role of the board of directors

Read the whole piece to find out more.

 

Management Today explains how firms in the U.K. are increasingly exploring employee ownership options — and offers tips to interested owners