IMPACT OF EMPLOYEE OWNERSHIP

Below is my summary from the “The Ownership Enquiry – Final Evidence Report” June 2018, which I thought a great introduction for anyone wanting to understand why I introduced employee ownership into our family business. Educating yourself before jumping into launching EO is critical to the success of your succession.

The evidence of the impact of employee ownership on performance is overwhelmingly positive. The most apparent evidence is for smaller firms, firms with larger employee ownership stakes, and in studies over longer time horizons.

Employee-owned firms tend to be more productive, have higher employee engagement, along with factors like rewards sharing, job satisfaction, organisational commitment, and motivation – which is reflected in higher retention and lower absenteeism.

Employee-owned business is more resilient in crises and appear to have a positive impact on the broader community. This evidence has salience in the current economic climate. The economy is increasingly shifting from manufacturing to services. The increasing shift involves the development of … Read more

HOW IS YOUR EMPLOYEE-OWNED COOPERATIVE PERFORMING?

Mutual Value Measurement or Cooperative Value measurement is a recently developed method funded by BCCM and Monash Business School

As values-based businesses, the greatest challenge for co-operatives and mutuals is to let our values shine. This is a new way of measuring our positive impact on our members, our customers, the community and the economy.

There is a toolkit for measuring the value we create. A framework that helps the CME sector measure their total value creation (mutual value) through a set of common dimensions. Creating a commonly shared language about measuring and reporting mutual value.

The MVM Framework can be used by CMEs across different industries, of different sizes, and with different capabilities.

The Framework uses six dimensions to cover the unique areas of value that CMEs generate.

  1. Commerciality

Generation of sustainable economic value for current and future members through business cooperation

  1. Shaping Markets

Creating, maintaining and/or shaping sustainability and competitive markets for goods and services

  1. Member relationships

Building … Read more