Our 4th Annual Conference held last May 2015 in Melbourne was a huge success.
Now we are getting ready for our 2016 conference to celebrate our success, and focus on an employee owned future.
EOA 2016 Awards and Conference: Sharing the Employee Ownership Future
What could the future look like with greater employee ownership? Could this be a key part of the innovation agenda?
For all the details on the 2016 Conference, please see our Conference website.
If you wish to nominate for an ESOP Award, please see the entry criteria and nomination forms under “ESOP of the Year”.
Where the employee ownership world meets
The conference is the largest of its kind in Australia and attracts professionals from across the business world, including share plan advisers, administrators, HR professionals, employment and contract lawyers, finance directors, company secretaries and communications experts.
Previous ESOP of the Year Awards
The 2015 ESOP Of The Year Awards Lunch was held on the same day as the 2015 EOA Annual Conference, 21 May 2015, at Greenwood Herbert Smith Freehills, Melbourne, and celebrated companies that exhibited employee ownership excellence.
Employee Ownership Reform could Significantly Boost our Economy
Employee Ownership Australia and New Zealand Association (EOA) research shows that a reversal of changes to employee share ownership made in 2009 would add a significant boost to the economy over the long term. The potential impact is $1.4 billion positive impact on the economy over a 10 year period and $215 million year on year.
EOA estimates that amount of money that was subject to income tax under employee share plans has halved since the 2009 changes. Download and read Employee Share Schemes – Their Importance to the Economy.
The EOA Solution for Start-Ups
Employee Ownership Australia and New Zealand has a plan solution for start-up companies
Download and read Our Response to the Treasury Consultation on Start-Ups (2014).
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%.
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.