Employee Ownership Benefits
In employee-owned businesses, employees are motivated to think and act like owners, which produces an engaged culture where everyone is invested in and benefits from company success.
When employee ownership is working effectively, motivated employees are thinking and acting like owners. They create more success for all employees and all owners because it’s their company and they have a stake in the outcome. Customers benefit from products and services from employees who care. The community benefits by having a solid, successful business that’s built to last.
Attract & Retain Employees
Employee ownership is a tool for recruiting new hires who want a vested stake in their work as well as engaging current employees to drive growth and success for your company. According to the Pennsylvania Center for Employee Ownership (PaCEO), increased employee engagement leads to an 8% average increase in productivity.
Provide Rewards for Employees & Owners
In an employee-owned company, employees are given a financial stake in the business. As the business succeeds, all employees and all owners share in that success, leading to a more motivated and invested team. According to the National Center for Employee Ownership (NCEO), that translates to an incremental 6% to 11% added growth per year for companies while the PaCEO cites that employees at these companies receive 5% to 12% higher average wages.
Plan for the Future
The PaCEO cites 70% of business owners over the age of 55 have no written succession plan. As business owners start to think about the next generation of leadership, employee ownership can create a seamless transition at the pace that works for both the company and its owners. With four main types of employee ownership options, you can decide how quickly and at what percentage you’d like to transfer ownership so everyone wins.
Create a Legacy
After you’ve built a successful business that benefits the community, maintains jobs, and impacts the local economy, employee ownership is a way to preserve that legacy. The PaCEO states employees at employee-owned companies are 4 times less likely to be laid off while employers boast a 25% higher job growth over a 10-year period—meaning your business can be a lasting fixture in the business community for years to come.
Explore with Tandem
As a nonprofit, Tandem is designed to help you discover employee engagement, profit sharing, and employee ownership options. The team at Tandem walks alongside you to evaluate your needs, outline a potential path forward, and make the transition smooth. Ready to explore your options?