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The benefits of choosing an employee buyout
An increasing body of research shows that combining share ownership with a greater influence in how the organisation operates can lead to superior business performance. There are other benefits that are linked to a worker co-operative or co-owned structure.
According to a recent CASS business school report, employee owned businesses report productivity levels between 9%-19% higher than similar traditionally structured businesses.
Worker co-operatives and co-owned businesses tend to be more sustainable (less likely to fail than traditionally owned businesses) and are able to take a longer term view as there are no external shareholders requiring short term returns.
“Employee-owned businesses are more resilient: their performance is more stable over business cycles, and they have outperformed the market during the downturn.” CASS business school report
Businesses that combine a real ownership stake and employee involvement report very high levels of employee engagement, employee commitment, retention and low levels of absenteeism.
They also benefit the communities they operate in because the rewards are shared amongst the people who work within the business rather than going to a single owner or external shareholder as is the case in more traditional structures.