“For the enterprise it unlocks the human capital of employees, which can drive improvements and greater success…Employees who have shares are more likely to be in tune with, and part of, a company’s mission and success because they have a stake in the outcome”.
“As we look to the challenges in the decades ahead, we know our capacity to do better will be built on a more productive economy. A revolution in employee share ownership has the potential to add a couple of cylinders to our economic engine”.
Tony Smith MP
“Employee Ownership will deliver a significant boost to the Australian economy. Broad based employee share ownership has been unequivocally shown to promote employee savings, innovation and productivity.”
Angela Perry, Chair of EOA and Link Market Services Global Head of EPS
U.S. companies take advantage of a variety of forms of employee ownership, from the broad-based stock options that are an integral part of the Silicon Valley innovation engine, to employee stock ownership plans, which boost the performance of companies from all sectors of the economy and increase jobs in local communities. When visiting Australia I was surprised and disappointed to see the barriers and limited tools available to Australian companies that want to share ownership with their employees. By adapting legislative ideas from the U.S. and the U.K., Australia can build an economy that is more productive, more fair, and more deeply rooted.
Loren Rodgers Executive Director, The National Center for Employee Ownership (NCEO)
The Employee Share Ownership Plan has helped bring together our employees from across our various business units, and to create a stronger sense of shared purpose. This workplace culture will be extremely important as we continue to expand into the future.
Jeffrey Broun, Greencap Managing Director
“. . . that since the introduction of the employee share plan, “People are now saying “us” instead of “me” and asking, “what do you want us to do?”. Job security is a key motivator at C-Mac and we do not want to lose employees with skills. There are now charts in the lunch room so everyone can see how the business is doing. The change has been truly unbelievable from all staff. I have directions and targets from the elected board (the plan involved the members electing two employees to represent them on the C-Mac board) and I have all the support I need from all staff. Our meetings are open for discussion with great ideas from all staff to improve efficiency. As a manager with job security and a share in the business it’s a great pleasure to manage a team who want you to lead with ideas”.
Steve Grlyak, Manufacturing Manager for C-Mac
In north America we always include an employee share plan as we know that it ensures that these businesses meet their business plan objectives. There is no such awareness in Australia.
Former Macquarie Bank Executive.
Research confirms also that employee ownership, on average, leads to increased firm productivity, profitability, and longevity. Evidence suggests that combining employee ownership with increased employee participation may generate astounding returns on investment.
Steven F. Freeman, University of Pennsylvania, Effects of ESOP Adoption & Employee Ownership: Thirty years of Research and Experience
There are a number of elements in companies with some degree of employee share
ownership which predispose them to outperform ‘classic’ business models. Research
from the UK, US and Japan demonstrates that companies with employee share
ownership, or significant levels of employee financial participation, have:
i. Higher productivity and financial performance
ii. Greater innovation
iii. Higher levels of customer loyalty
iv. Lower staff turnover
v. Increased shareholder returns.
Robert Postlethwaite, Johnathan Michie, Patrick Burns, Graeme Nuttall Shared Company