October is Employee Ownership Month: Celebrating the Success of Employee-Owned Companies!

October marks Employee Ownership Month (EOM), a time dedicated to celebrating the many benefits and successes of employee-owned companies. Throughout this month, businesses and communities around the world are coming together to highlight the positive impact of employee ownership on employees, companies, and society.

Employee ownership, through models such as Employee Share Plans, Employee Stock Ownership Plans (ESOPs), and Worker Cooperatives, continues to foster sustainable growth, job stability, and wealth distribution. Here’s an overview of the key activities and early highlights from this year’s ongoing celebrations.

Key Activities

Educational Workshops and Webinars: Companies are hosting workshops and webinars to educate employees about the benefits of employee ownership. These sessions cover topics such as financial literacy, the mechanics of employee ownership structures, and the long-term advantages of being an employee-owner.

Community Engagement: Employee-owned businesses are engaging with their communities through various activities, including open houses, community service projects, and charity events. These initiatives not only promote a sense of community but also demonstrate the social benefits of employee ownership.

Advocacy and Proclamations: Throughout the month, businesses are working to raise awareness of employee ownership through proclamations and advocacy efforts. These initiatives aim to increase recognition of the value employee ownership brings to businesses and the economy.

Employee Recognition Events: Companies are organising special events to celebrate and recognise employee-owners. Award ceremonies, team-building activities, and social gatherings are being held to strengthen ownership culture and morale.

Social Media Campaigns: Many companies are leveraging social media to share their stories and experiences with employee ownership. Using hashtags like #EmployeeOwnershipMonth and #EOM2024, businesses are connecting with a broader audience to raise awareness and highlight the advantages of employee ownership.

Key Statistics

Growth of Employee-Owned Companies: The number of employee-owned companies continues to rise globally. More businesses are adopting employee ownership models, contributing to the growing popularity of this approach.

Economic Impact: Employee-owned businesses continue to demonstrate their resilience and contribution to the economy, outperforming traditional companies in terms of productivity and profitability.

Employee Benefits: Employees in employee-owned businesses enjoy substantial benefits. This year has already seen an increase in the value of employee ownership accounts, reflecting the continued growth of employee-owned companies.

The Benefits of Employee Ownership

Employee ownership offers numerous advantages for businesses, employees, and communities, which are being celebrated this month:

Job Creation and Stability: Employee-owned businesses are recognised for their ability to create and maintain stable jobs. Employee ownership aligns the interests of the employees with the success of the business, promoting long-term job security.

Higher Wages and Benefits: Employees in employee-owned businesses often enjoy higher wages and better benefits than their counterparts in non-employee-owned companies, contributing to higher job satisfaction and financial security.

Economic Resilience: Employee-owned companies have shown greater resilience during economic downturns, helping to stabilise local economies and providing a buffer against economic uncertainty.

Increased Productivity and Engagement: When employees have a stake in the company’s success, they tend to be more motivated and productive, leading to better overall performance and profitability.

Community Impact: Employee ownership often fosters a sense of responsibility and pride among employees, which extends to greater involvement in local communities and support for social initiatives.

Looking Ahead

As we continue through Employee Ownership Month 2024, the celebration of the benefits of employee ownership is in full swing. Businesses around the world are highlighting the value of shared ownership models, and the positive impacts are being felt across the workforce and the economy. With even more activities and events planned for the remainder of the month, the future looks bright for the continued growth and success of employee-owned companies.

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.