New research carried out across the UK* has revealed that employee-owned businesses (EOBs) are outperforming the UK’s national productivity trend by being between 8-12% more productive than non-EOBs, based on Gross Value Added (GVA) per employee.
South Yorkshire manufacturer Gripple was part of this research project, which compared nine per cent of EOBs in the UK and contrasted them with a comparable control group of non-EOBs. This included interviewing the company’s management team and many other businesses to better understand the decisions that are driving economic, social and environmental impacts.
Ed Stubbs, Gripple’s Global Managing Director, said: “It is really satisfying to see the results of this recent survey. As an employee-owned business, we know the difference that having employees engaged in all aspects has on productivity.
“It means we all are committed to the quality of our products and services – something that is not easy for our competitors to match. We’re all working towards the same targets, and we all benefit when we meet them, so the focus on maintaining high standards is consistent across the business.”
As well as being more productive, the research project found that EOBs were more profitable and were more likely to re-invest that money into the economy by creating more jobs and investing in improving their products and services.
Gripple, which has been an employee-owned business since 2004, concurs with these latest findings, as the company’s EO culture gives all its people direct responsibility and encourages them to be actively involved. This, in turn, empowers them to drive improvements, and ultimately, contribute to the business’ success.
Ed Stubbs added, “We are proud to be working alongside the Employee Ownership Association (EOA) to encourage and support other UK businesses that are transitioning to an Employee-Owned model – the research really does back up our experience!”
James de le Vingne, Chief Executive of the EOA, said: “This is a new baseline in our understanding of the scale and impact of employee and worker ownership in the UK, contrasting EOBs with non-EOBs for the first time across economic, social and environmental outcomes. The findings are remarkable.”
“They clearly show that this small but growing section of the UK economy is punching above its weight across multiple dimensions to impact on individuals, businesses, communities and the wider economy. We urge policy makers to work with us to super-charge this responsible productivity our country so sorely needs.”
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