The model is exemplified by retail group the John Lewis Partnership,
and the Government is keen to see more organisations go down this
route. In the report’s foreword, Norman Lamb, minister for employment
relations, said: “Giving all workers a greater stake in the company
they work for is a powerful way of aligning the interests of employees
with that of the business. A worker who has a financial and personal
stake in a company will take more responsibility for its success.”
The report identified that barriers to companies becoming
employee-owned were legal, tax and regulatory complexities and the
perception that it is difficult to set up and administer. It also gave
recommendations on how to overcome these barriers, including the
introduction of a right to request employee ownership for staff and the
formation of an institute to collect and share knowledge about the
sector.
Iain Hasdell, chief executive of the Employee Ownership Association,
said: “Employee-owned businesses contribute around £30 billion to the
UK economy each year and I am delighted that the importance of employee
ownership has been recognised in this high quality report.”
The Institute of Directors
also supported the review. Simon Walker, the institute’s director
general, said: “Our aim as a nation should be to have a more
participatory, more accountable and as a result more popular model of
capitalism. Involving employees more closely in the future of the
businesses for which they work is a great way to do that.”