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.
EO Day 2022 – 10 reasons we’re excited to help #GrowEO
It’s back! The first fully in-person EO Day since 2019 and at JGA we’ll be adding our support to #GrowEO by celebrating on Friday 24 June.
EO Day 2022 marks a decade of this calendar highlight, which the Employee Ownership Association (EOA) launched in 2013 to champion the benefits of operating business in this different way. Since then the world’s changed, but EO continues to show the potential of business as a force for good.
So here, for EO Day 2022, are 10 reasons we’re excited to help #GrowEO:
1. EO is a diverse and dynamic sector
From professional services, manufacturing and construction to retail, healthcare, farming and film – there are now more than 800 EO organisations operating successfully in virtually every sector, with the 50 largest employing 180,000+ people across the UK.
2. EO is making its (economic) presence felt
In 2021, the combined value of the UK’s top 50 largest EO businesses exceeded £21bn. The EOA’s new Knowledge Programme is gathering the data and insight to transform the UK’s understanding of EO and the sector’s knowledge about itself.
3. There’s no one (EO) size fits all
And that keeps us on our toes (in a good way). JGA’s knowledge of the different EO models means we can support our clients to choose – and tailor – the one that best suits their culture, sector and size.
4. The best EO companies are leading the way on ESG
ESG has become a social, economic and business priority for 2022 and beyond. Employee-owned Riverford Organic Farmers is a shining example of how good EO combined with good ESG can make a real difference on the ground.
5. The EO community is innovative and supportive
At JGA, we love the conversations we share with our EO networks, thanks to the insight, support and connection they provide. We also value our relationship with our Trusted Partners who share our commitment to #GrowEO.
6. Working together is a better way of doing business
And, done well (right support, right time, right people) you don’t get more ‘working together’ than when you successfully transition to EO. We’re inspired by how the most innovative EO companies share responsibility, opportunity and reward.
‘We’re inspired by how the most innovative EO companies share responsibility, opportunity and reward’
7. The EOA are good people to work with
In May, we enjoyed our Yorkshire road trip to meet new CEO James de le Vigne and the EOA team. We’re delighted at the EOA’s stronger focus on promoting EO’s economic and social potential as a force for good.
8. EO is where we came from…
At JGA, we don’t just work alongside EO clients: many of us have also worked and led in EO organisations ourselves. Together, we have a combined 100-plus years’ direct EO experience, so we understand what EO really involves.
9. … and it’s where we’re heading too
We’re used to enabling others to shape their EO transitions, but now we’re taking steps to become EO ourselves. We recently enjoyed our first ever JGA Employee Conference. It feels exciting and unnerving at the same time.
10. EO is a great excuse to eat cake
Not every day (obviously) but in 10 years no EO Day celebration has ever happened without a few treats being baked, iced and eaten. At JGA, our ‘cake plans’ are already in motion ahead of this year’s special EO Day.
To find out more about how you can get involved in EO Day 2022, see the EOA website.
To find out more about how JGA can support your EO business with our Transition, People and Governance services, please get in touch here.
EO Day 2020 - time for change
Friday 26th June is Employee Ownership Day. Lisa Fryer, Associate, considers how now may be the perfect time for even greater awareness of this business model.
When the June edition of People Management landed and I took a moment to flick through the articles, ‘Remaking Corporate Governance’ caught my eye. So I made a coffee and allowed myself time to take a closer look…
There is no doubt that the current circumstances are having a significant effect on the way that companies are operating. At the beginning of 2020, key questions were centred around how businesses were addressing their environmental impact and supporting positive climate change action. How could UK businesses prepare and adapt to the impact of Brexit and whatever related trade deals were also major concerns?
Within a few short months we’ve experienced global disruption to welfare and economies as a result of Coronavirus. Currently the inequality experienced by all BAME communities has been brought in to sharp focus, with heightened awareness as a result of Covid-19 impact in addition to protests following the deeply disturbing footage of Ahmaud Aubrey and George Floyd.
Those businesses who have responded positively, engaged communities, demonstrated genuine care and concern for their employees and acknowledged their impact on wider society appear to be weathering the storm better. Maybe our fundamental need to be acknowledged as valuable individuals rather than expendable assets has finally come clearly in to focus.
The article explains how corporate investors and boards are aware of ESG (environmental, social and governance) factors. The apparent mentality around ‘pie splitting’ rather than ‘pie growing’ was referenced, with an acknowledged shift towards the latter being increasingly identified, but not mainstream. The roles of HR Directors and NEDs in ensuring recognition and discussion around the changes taking place in society were noted, with a reflection that these discussions more frequently appearing on board agendas. Instead of worrying about how to chop up what was available, the article reports more focus on activities that enable businesses to grow, naturally making more available for everyone. Bonus pay outs for bosses or buying up stock options doesn’t necessarily build business resilience.
I couldn’t fail to notice a couple of quotes picked out in the article. “It will take a long time for people to go back to brands they feel haven’t done the right thing”, and also “If it’s a choice between helping society and boosting profits, it’ll be profits every time”. We should of course all be aware of the role we play in this as consumers.
In my 30+ years of working within the EO community, it’s easy to think that so many would want to undertake business in a positive and ethical way. And yet for me, this article highlighted that so many businesses are yet to identify the benefits of doing the same business in a different way.
Whilst the article covered the changing pressures on boards to adjust their business focus in the current climate, there was little reference to the Employee Ownership model: this introduces a further layer of governance and assurance focused on ethos, community and doing the right thing, even when nobody else is looking.
When you’ve built this in to your business model, it can be so much easier to take those long term decisions. You can tap in to your deeply committed employees, connect with a loyal customer base and communicate innovative change in a positive and future focused way. For good measure, your customers and clients know that you are more likely to be there in the future for them, because you’re not worrying about how much pie you’ve got to split up. You just want to make sure that you can keep on making even more of those beautiful pies long in to the future.
So if you were to ask me what needs to come from the current situation, it would be for the business community to acknowledge that Employee Ownership is not a marginal option or business model for those slightly quirky business owners who want to give something back to their employees. Employee Ownership already has a corporate governance model that addresses a number of the concerns this article has identified. Although we cannot claim these businesses are perfect in this area, there is a far smaller risk of boards misjudging situations when there are Trustees to assure, particularly employee trustees.
Employee ownership is one business model option that helps to address perceived capitalist greed, executive privilege and the endless pursuit of profits at whatever expense. Employee ownership is an opportunity to work and contribute towards something that will enhance others lives for a long time after you’re on the board or a part of the organisation. Employee ownership is the model of business that enables greater engagement and focus around your ultimate purpose, which in turn more effectively supports your immediate community, stakeholders and employees.
So for me the question for EO Day 2020 would be, ‘How can we build resilient and sustainable organisations that we can trust to do the right thing?’
#EOisTheAnswer
EO Day with a difference
Philippa Meaden, Associate Lead, shares her thoughts about this EO day
Following the last 12 weeks spent getting to grips like so many, with home schooling, juggling working hours, whilst competing with friends and colleagues in who can bake the best cake! … here’s what I think about this years EO day.
I have not met anyone yet in my 20+ years of working in employee owned businesses who doesn’t love a good story. I and my colleagues often talk about getting the narrative right, it might be the legacy of founders, it might be the desire of a leadership team or it might be the values and wishes as voiced by the collective employee owners. Whatever the prose, EO day is a great platform for everyone in the EO community to come together and share, learn and make new connections.
The past year for the JGA team has been a busy one in so many exciting ways, and we are just as happy and willing to share some of our stories and experiences with you. (Take a look at some of our case studies )
EO day this year is going to be different however. Having been asked by so many of our clients to join them in marking the importance of their culture last year and the miles stopping us, maybe this years virtual world will allow us to drop in!!
So whether you choose to share your EO adventures of the last year, demonstrate the teams excellent cookery skills, or use the day to make connections, I hope you all have a safe and happy EO day.
Happy EO Day 2019
Celebrating and discussing future success of our many EO clients, wishing them well and looking forward to seeing you all at this years conference, if not before.
We've exciting plans for 2020 and beyond …