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Several months ago the U.K.-based Employee Ownership Association published an exceptionally important and insightful report about the tremendous benefits of employee-owned companies. The report has some invaluable observations for all businesses, and I highly recommend it. Here are just a few highlights:
- Employee owned businesses have the potential to meet two vital objectives, which are too often seen as diametrically opposed. They are ideal vehicles for meeting productivity challenges but also for generating happiness; an employee-owned company is a wellbeing creator as well as a wealth creator.
- The Employee Ownership Index (EOI) has consistently outperformed the FTSE All-Share. In cash terms, an investment of £100 in the EOI in 1992 would have been worth £349 at the end of June 2003; the same amount invested in the FTSE All-Share would have been worth £161.
- For a worker on a $65,000 a year salary, an increase from a job satisfaction score of 8/10 to 9/10 delivers as much extra happiness as an extra $35,000 in their annual pay check.