2014 EOA Conference
The Annual Conference will be held on Thursday 22 May 2014 at PWC in Sydney. The program will explore employee ownership in Australia with reference to company stories in Australia and globally. The panel discussions will be run with panelists from the listed and SME companies, with an afternoon training programs only this year followed by our Awards Ceremony.
2014 ESOP of the Year Awards
EOA Report – February 2014, The Solution for Start-Ups
Employee Ownership Australia and New Zealand offers a plan solution for start-up companies
Download and read Our Response to the Treasury Consultation on Start-Ups | EOA Report, February2014
EOA Report – April 2013, Information about the Current Trends in Employee Ownership
Employee share ownership weakened by government legislation, new report finds
Lower participation in employee share plans and a decrease in the use of option plans is hitting innovation in Australian business
Download and read The Changing ESS Landscape since 1 July 2009 | EOA Report, April 2013
Download and read Media Release
Why Employee Ownership/ESOPs are so important?
The basic proposition is simplicity itself: people work better if they are working for themselves.
In the US where employee ownership is wide spread, one third of the Wall Street Winning Workplaces have Employee Share Ownership Plans (ESOPs) in place. This suggests employee ownership is a factor that impacts company performance, morale and employee engagement and participations.
What does this translate into? Most importantly, from a company’s perspective it can bring increased customer and employee attraction rates, talent retention and employee motivation through pride. But such recognition relies on more than quick fix perks. ESOPs need to be tied to a company culture that operates through trust, open communication, performance recognition, opportunities for career progression, remuneration and cultural fit. All of these could be assisted with the introduction of employee share ownership.
Imagine a business where employees were as motivated, passionate and hard-working as the owner or as interested in organisational value and success as stakeholders. In essence, this is what employee ownership programs can deliver. Based on the premise that one ‘goes the extra mile’ when they’re doing something for themselves, well designed programs increase productivity, performance and investment. Sales and employment growth show gains of more than 2.4% above predicted expectations, after an ESOP is introduced.
For the enterprising business owner who has toiled for years to grow their business and now dreams of retirement, ESOPs allow for a transitional scale back of day-to-day involvement. For the employee, where acquisitions or mergers potentially fuel disgruntlement, job insecurity and a desire to ‘jump ship’, ESOPs offer opportunity, recognition and increased participation in core company initiatives.
C-Mac Industries, an Australian based company who recently underwent an employee takeover is a case in point. With the death of their previous owner in 2008, there was uncertainty regarding future company direction. A few fearful employees left, before the company implemented an employee buyout scheme. This proved a successful alternative to selling the company to an external buyer.
Organisations globally recognise these benefits. In the US, there are an estimated 25 million employees (out of some 120 million in the non-governmental workforce) participating in US ESOPs or employee stock purchase plans. In the UK, around 21% of public companies have broad-based ESOPs or share ownership plans. However, Australia seems to have undercapitalised on this opportunity with estimates of only about 6%6.
The text above uses an article by Rosalyn Sadler of Mastertek as its core content which sums up our thinking into why ESOPs are so important.