Shared Ownership, Greater Productivity

An ambitious study has shown employee ownership can lead to increased productivity

In Brief: New data from the University of Stirling in Scotland has shown that the move to employee ownership can result in an increase in a firm’s productivity. 

The Details: Researchers in the UK commissioned by the Employee Ownership Association completed an analysis of 9% of the total employee owned firms in the country. They ultimately determined that firms who were employee owned experienced a variety of benefits including 8-12% greater productivity in metrics like Gross Value added per employee. They also found that employee owned businesses created more jobs, had better benefits, and were more likely to retain staff for a significant period of time. 

Why It Matters: This is one of the most ambitious studies of its type, analyzing a significant number of firms in the region. Studies such as these provide compelling evidence for advocates of Employee Ownership as they push for government policy and incentives for greater employee ownership. It also serves as an effective case study for firms who may be hesitant to make a move based on lofty ideas like theory or the example of a few firms. Hard numbers such as these provide a valuable tool in the fight for greater employee ownership. 

Go Deeper: Check out the full data here. 

Image Credit: Photo by Isaac Smith on Unsplash