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Increased Productivity in Employee Owned Businesses
Research reveals increased productivity in UK EOBs
Recent research on UK employee ownership covered by Phys.Org, reveals something noteworthy. Independent researchers examined more than 9% of the UK’s 1650+ Employee Owned Businesses (EOBs), and contrasted findings with a control group of non-EOBs. The study indicated that EOBs showed an 8-12% higher productivity based on Gross Value Added (GVA) per employee.
The study connected the increased productivity in Employee Owned Businesses (EOBs) to several findings:
1: EOBs give employees double the amount in bonuses and dividends
2: EOBs are five times less likely to lay off employees in the past 3 years
3: EOBs typically pay a higher minimum annual wage, approximately 2,900 more, and are more than twice as likely to hold fair pay accreditation.
4: EOBs provide greater support for private health care, mental health resources, and flexible working arrangements.
5: EOBs invest an average of 12% per annum (38,000) more in on-the-job training and skills development.
6: Since adopting an Employee Ownership (EO) model, 83% of EOBs reported increased employee motivation since adopting an EO model and 73% reported higher job satisfaction.
In the article by Phys.Org, they highlight commissioners of the report and their argument that investing more in existing employees is what is needed for growth and a better economy, community, and overall more sustainable planet. To learn more, click here!