From 16 to 18 November 2021, the firm-wide Fieldfisher Employee Ownership (EO) team attended and exhibited at the Employee Ownership Association (EOA) Annual Conference. This year the Conference was virtual with a broad range of learning topics, breakout sessions and networking opportunities. It proved to be both inspiring and informative and we have set out our take on some of the key messages below.
Putting employees first
Through attending some of the breakout sessions, a key message we took away from the Conference was that a successful employee owned business will focus on prioritising its employees so that they can develop and thrive within the business. For us, listening to some of the companies' employee ownership stories and their passion for making the transition, has been engaging and informative. We heard from many companies who believe that becoming employee owned has enhanced the work culture and company ethos as well as resulting in increased employee engagement and satisfaction.
Diversity and innovation
It is fascinating to hear about how companies use employee ownership in different ways: some are owned indirectly by employees through an employee ownership trust (EOT); some use direct share ownership, whether or not through tax advantaged share plans such as a SIP. Employee owned companies also use a wide range of tools to encourage employee engagement - for example, through employee councils, employee forums or employee representatives. These different approaches are very much driven by what is best for each business and this diversity shows the strength of the employee ownership business model and its ability to evolve and innovate.
Developing good governance
Over the last few years, there has been significant growth in the number of companies transitioning to become employee owned. Statistics published by the EOA state that, as of June 2021, around 75% of employee owned companies are using the EOT model. As the EOT's popularity increases, this brings the need to develop strong foundations for governance and good practice within the sector. Interestingly, in one of the sessions given by Graeme Nuttall OBE (Partner at Fieldfisher) and Sue Lawrence (Founder of Independent Directors and Trustees Limited) it was noted that currently there may be too much flexibility in terms of the governance of EOTs and that good practice governance guidance or regulation could be put into place to improve the governance of EOT-owned companies and to prevent opportunities for abuse.
2022 will build on the success of this model
Particularly in relation to the increasing number of companies that are becoming employee owned, 2021 was a great year for EO and we are excited to see what the developments in 2022 will be.
Through attending some of the breakout sessions, a key message we took away from the Conference was that a successful employee owned business will focus on prioritising its employees so that they can develop and thrive within the business. For us, listening to some of the companies' employee ownership stories and their passion for making the transition, has been engaging and informative. We heard from many companies who believe that becoming employee owned has enhanced the work culture and company ethos as well as resulting in increased employee engagement and satisfaction.
Diversity and innovation
It is fascinating to hear about how companies use employee ownership in different ways: some are owned indirectly by employees through an employee ownership trust (EOT); some use direct share ownership, whether or not through tax advantaged share plans such as a SIP. Employee owned companies also use a wide range of tools to encourage employee engagement - for example, through employee councils, employee forums or employee representatives. These different approaches are very much driven by what is best for each business and this diversity shows the strength of the employee ownership business model and its ability to evolve and innovate.
Developing good governance
Over the last few years, there has been significant growth in the number of companies transitioning to become employee owned. Statistics published by the EOA state that, as of June 2021, around 75% of employee owned companies are using the EOT model. As the EOT's popularity increases, this brings the need to develop strong foundations for governance and good practice within the sector. Interestingly, in one of the sessions given by Graeme Nuttall OBE (Partner at Fieldfisher) and Sue Lawrence (Founder of Independent Directors and Trustees Limited) it was noted that currently there may be too much flexibility in terms of the governance of EOTs and that good practice governance guidance or regulation could be put into place to improve the governance of EOT-owned companies and to prevent opportunities for abuse.
2022 will build on the success of this model
Particularly in relation to the increasing number of companies that are becoming employee owned, 2021 was a great year for EO and we are excited to see what the developments in 2022 will be.