Trends Toward Employee-Owned Business In The UK Continue to Grow.
- Number of employee-owned businesses continues to grow by 10% annually in the UK
- Research shows switching to employee owned harbors many benefits
According to the EOA (Employee Ownership Association), the number of employee-owned businesses in the UK continues to grow at a rate of around 10% annually. The economic impact of employee-owned businesses in the UK is also significant - It is estimated that Employee-owned businesses now contribute around £30 billion to the UK economy and account for around 4% of UK GDP (EOA, 2022).
Employee ownership is a relatively new trend in the UK that started with the government’s introduction of the EOT scheme in 2014. The purpose of such a scheme was to increase employee ownership in businesses, this means that employees are directly invested in the overall success of their organisations.
Organisations that have made the switch have experienced numerous benefits such as:
- Increased motivation and loyalty from employees leading to increased business performance – Since the employees of the business are part owners then there is a higher motivation to make sure the business succeeds, if the business is growing then staff reap the benefits. This creates an environment that nullifies low productivity
- Better recruitment and staff retention – The nature of an employee-owned business means there is an added incentive for talented individuals to join. If these individuals can improve the business, then they will see the fruits of their labour where elsewhere they may feel underappreciated, this increases loyalty. Employee-owned businesses also incur fewer sick days which helps productivity.
- Increased innovation – Employee-owned businesses are always looking for ways to make their practices more efficient or to provide a better experience for their customers. Managers will often do their research, consult with other organisations and freely share info with other staff.
- Increased sustainability and social performance – Employee-owned businesses are involved directly in their community as their employees often live and know people there. They are also run openly and transparently which encourages good practices.
Mediascape switched to an employee-owned model in 2018 when it was uncommon amongst UK businesses, and since then we have become Scotland’s leading Audio-Visual specialists.
This forward-thinking decision has paid off with record years and allowed Mediascape to bounce back strongly from a global pandemic.
From Mediascape’s own experience we can attest to many of the above-mentioned benefits, for example, we are always looking to innovate and revolutionise the AV landscape. From Holographic technology to interactive touchscreen displays we are always trying to provide our customers with the best possible AV solution.
In the first 2 years of employee ownership at Mediascape, turnover was increased by 50%, showing the effect the transition had on productivity as well as overall business performance.
According to the EOA, 95% of businesses that made the switch to employee-owned were happy with the decision and at Mediascape, we believe it has helped create a culture of productivity, synergy and openness.
We hope many businesses follow suit and give more equity to those who put the hours into building the institutions they work for.