Known as the nation’s favourite retailer, the secret to the success of the John Lewis Partnership arguably lies in its name. It is one of the UK’s leading firms in terms of employee ownership, with “partners” that actively participate in the business and receive the same percentage of salary paid as a profit-sharing bonus.
Workers at retailer John Lewis may have received a bonus equating to five-weeks pay (10 per cent), but the 2016 figure marked a further fall from a high of 20 per cent in 2008.
What is employee ownership Why introduce it Is it right for your business Find out the answers to these questions – and more.
To mark Employee Ownership Day on 3 July, Real Business sat down with Postcode Anywhere and its co-founder Guy Mucklow to find out what motivated him to offer staff shares and how the process actually works – both logistically and financially.
Increasing engagement and making staff feel like they each have a vested interest in operations is a hard shift. Real Business finds out how four different businesses have implemented an employee shareholder scheme to do just that.
Robert Postlethwaite shares some tips for creating an employee share scheme.
In recent months, it has been impossible to watch the news without hearing about the privatisation of Royal Mail. Indeed, such was the interest and demand for shares in the company – private investors were limited to a maximum of a £750 investment. But the fact that up to 150,000 Royal Mail employees were to be given a direct stake in the business themselves, was largely overshadowed.
Policy makers are increasingly embracing employee ownership as a key sustainable business model, and over the last 18 months we have seen a significant increase in support for this sector.
As more companies adopt employee ownership schemes, profitability is increasing.
Gary Davie says that founders looking for an exit should consider an employee-owned model.
Seasoned entrepreneur Martin Leuw explains why share schemes for employees are good for business.
Given the green light by the government, employee ownership could become the next driving force for economic growth.