WESTMINSTER


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mployee ownership is now the most prominent alternative to the external ownership of businesses in


the UK. Interest in it amongst politicians and within business communities is increasing daily. This month’s first official Employee Ownership Day has enhanced awareness of this important part of our economy. Employee ownership is the


model in which a business is totally or significantly owned by its employees. It already contributes more than £30bn each year to UK GDP.


Employee owned businesses


tend to have higher productivity, greater levels of innovation, better resilience to economic turbulence and more engaged, happy workers who are less stressed than colleagues in conventionally owned organisations.


infrastructure provided by Mott MacDonald, to the agriculture and leisure products of Galloway and MacLeod, through to the chemicals of Scott Bader, the paper and packaging of Tullis Russell, the precision engineering of Gripple, the brilliant cash and carry operations of Parfetts, the advanced textiles of Scott and Fyfe, the world leading blades and scalpels of Swann Morton and the project


and programme


powerhouse that is CH2M Hill, employee ownership is leading the way on economic growth. Because of the growth and


Economic


competitiveness and high performance are a central part of the DNA of employee owned companies. Crucially, over the last 15 years, shares in employee owned


businesses have


considerably outperformed those in the FTSE All-Share Index. There is a growing


Iain Hasdell is


Chief Executive of the


Employee Ownership Association


realisation that employee ownership in its many forms drives innovation and quality whilst spreading wealth and optimising the fulfilment of employees. There is hardly any part of the economy in which employee ownership is not now an important part of the growth agenda. From the global


competitiveness contribution it makes, including in the smaller knowledge-based companies on which the UK economy increasingly relies, employee ownership has a massive role to play in our economic future. The number of employee owned businesses is increasing by around 10% year on year right now. It is a growing economic force. Employee ownership is becoming a core component of UK industrial strategy. It is a successful business model in every sector of the economy that


constantly


challenges the conventional wisdom of those who suggest business owners should always share ownership with external investors. So, overall, the momentum behind employee ownership is good. We really are very much in


the decade of employee ownership – its time has come.


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