EO’s record growth: New stats revealed – and JGA’s verdict
It was the standout figure of the day – 1,000-plus and counting: that’s how many UK companies are now employee-owned. This encouraging news, and other evidence of EO’s continued growth, was unveiled by the Employee Ownership Association as it kickstarted celebrations last Friday for EO Day 2022.
Even better, that 1,000-milestone figure followed a record three years of growth, during which the number of employee-owned businesses (EOBs) has more than doubled – from fewer than 500 in 2020 to 1,030 today.
But what else in the EOA’s 2022 Report caught JGA’s eye?
The success of the Employee Ownership Trust
Lisa Fryer, JGA’s Operations Manager, was excited at the record rate of the EO sector’s recent growth.
She was also struck by report co-author Professor Andrew Robinson’s comment that EO is now in the ‘mainstream’ of British business, thanks to the ‘phenomenal success’ of the EOT (Employee Ownership Trust).
As the University of Leeds Professor explained: ‘EOTs are so attractive because they enable business owners to step back without fear their company will be taken over by someone who does not value the culture, values and employees that are part of the business.’
Lisa agrees, pointing to the impact of 2012’s independent Nuttall Review of Employee Ownership by Graeme Nuttall. The review’s recommendations to government led to the creation of the EOT as a vehicle for promoting employee ownership – underpinning the growth of the sector today.
Supporting founders to make the right choice
‘JGA was established in 2014, at the time the Nuttall Review’s recommendations came in,’ Lisa recalls.
‘From the start, our mission has been aligned to helping owners / founders truly understand and prepare for what they want their version of EO to be.
‘In the years since, we’ve evolved new products and services around transition, people and governance to match the sector’s growth. It’s been a dynamic time to support this different way of doing business, alongside the other values-driven clients we serve.’
Putting values at the heart of good EO
Lisa’s particularly pleased to see values becoming a ‘must have’ feature of the modern workplace – and not just for the younger generations. The EOA’s 2022 Report reveals that 71% of EOBs have a statement of purpose, which includes making a positive contribution to society and the environment.
‘We work with many different models and mixtures of ownership – from 51% through to 100% EOT, and many below that level exploring if introducing an EOT is their next step in succession planning,’ she explains.
‘In our conversations with founders today, around legacy and employee ownership, even more are expressing their desire to retain the culture and ethos on which their business was built.’
‘EOTs… enable business owners to step back without fear their company will be taken over by someone who does not value the culture, values and employees’
Professor Andrew Robinson, Co-author, EOA 2022 Report
A more productive way to do business
So what else in the EOA 2022 Report stood out? Here are some final headline stats…
The top end of the EO sector continues to out-perform the rest of UK business in terms of productivity – at between two and three times the national average.
96% of EOBs say looking after the workforce is a key measure of business success.
97% of EOBs have at least one form of employee governance – 74% have at least two.
90% of EOBs report that employees have some or a lot of say in decisions on working conditions – 85% have some or a lot of say on new working methods.
To find out more about how JGA can support your EO business with our Transition, People and Governance services, please get in touch here.