PUTTING STAFF FIRST

The concept of employee ownership trusts (EOTs) is gaining popularity in the UK, with more and more companies adopting this model of ownership. Last month, unLTD did some digging into the advantages and potential drawbacks of making this move, speaking to a couple of local business owners who’ve undergone the transition in the process.

In a nutshell, EOTs are a form of employee ownership where a trust holds a controlling stake in a company on behalf of the employees. Possibly the most significant benefit of EOTs to a workforce is that they create a culture of shared ownership, which can lead to increased employee engagement and commitment. In turn, these factors can result in improved productivity, higher job satisfaction and reduced turnover.

One of the most recent converts in South Yorkshire is sustainable catering company PJ Taste, which went live with the scheme earlier this month. After 17 years in business, co-founder Peter Moulam told us that it seemed the perfect way to show staff how much they were valued.

“It’s about working together and not having a hierarchical structure to that ‘one team’ mentality. We’ve got members of staff who’ve been with us for fourteen years, and the majority have been with us between four and six years, so it feels like it’s the ultimate way to get staff involved, as beneficiaries of the trust.”

Another advantage of EOTs is that they can help to preserve a company’s legacy and culture. When a company is sold to a third party, there is often a risk that the new owner will make significant changes that are not in line with the original vision and values of the business. By contrast, EOTs ensure that the company’s