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A Transformational Structure
Why the social care sector is the perfect home for EOTs
In Brief: EOTs offer an exciting alternative structure option for the social care sector.
The Details: Generally structured as small to medium sized companies, firms within the social care sector are ideal candidates for transferring to the EOT structure. In addition to being the correct size, the low compensation for many of those serving in the sector also means that the move to an EOT could be “transformational” for employees according to Alan Greig, an advocate for employee ownership in Australia. Greig explains that, currently, “Social care EOT’s are big business in the UK with 16 of the “Top 50” employee owned businesses there being in that industry, with about the same number amongst the “Top 100” in the USA.” In the UK, two of the largest employee owned social care companies are a cleaning company employing almost 2,000 workers and an in-home and hospital care company employing more than 3,000 workers. Another social care EOT, Child Based Partnership, has been ranked as one of the top two best companies to work for in the UK in 2020 and 2021, respectively.
Next Steps: Greig believes that the next step is expanding beyond the UK. He explains, “the next step is to develop the ‘market’ for this business structure amongst private businesses operating in the aged care and disability sectors in Australia.”
Go Deeper: Check out an article on current social care EOTs in the UK