The Ownership Effect Inquiry: What Does the Evidence Tell Us?

A recent study provides evidence to support the social and economic benefits of Employee Ownership.

A literature review published by CASS Business School, University of London, and Alliance Manchester Business School, University of Manchester, demonstrates the following:

• Employee Ownership has a positive influence on the economic performance of firms.
• Over the long run, firms with larger employee ownership stake demonstrate stronger performance.
• The evidence of the positive influence of employee ownership on economic performance is stronger for smaller firms.
• Studies lend support to the view that employee ownership influences productivity.
• Employee ownership increases the ability of firms to deal with economic and business crises.
• Evidence shows a positive influence of employee ownership on factors of employee engagement such as reward sharing, employee satisfaction, organisational commitment, identification with the organisation, job attitudes and motivation.
• Employee ownership increases employee retention.

That’s quite an impressive list and provides multiple commercial reasons for business owners to look to introduce an Employee Share Ownership Plan (ESOP) to improve performance, retain and motivate employees and build a more resilient and sustainable business.

The evidence of the impact of employee ownership is overwhelmingly positive and is very relevant in the current economic climate.

If you like the sound of the above, get in touch to discuss the potential of an ESOP for your business with an Accredited Adviser.

The full report can be found via The Ownership Effect website here.

Dr Craig West

Founder & Chairman | Succession Plus

Dr Craig West is a strategic accountant who has over 20 years of experience advising business owners.

With a background as an accountant in practice and two master’s degrees, Craig formed a strong view that the majority of business owners (and often their advisers) were unprepared and unaware of the steps required to prepare for exit. He then designed and documented a unique 21-Step Business Succession and Exit Planning process to assist owners and their advisers in navigating this process.

Craig now acts as a strategic business and financial mentor for mid-market business owners. Craig has written four critically acclaimed books educating business owners on employee incentives, succession planning, asset protection, and exit strategies. Additionally, he has completed doctoral research on Employee Share Ownership Plans (ESOPs) for succession.

Craig is a Member of the Forbes Business Council where he leverages his extensive experience to contribute valuable insights on helping business leaders navigate the complexities of growing and exiting their businesses.

In April 2024, the Exit Planning Institute admitted Craig to the International Exit Planning Circle of Excellence.