Several months ago the UK based Employee Ownership organization published an exceptionally important and insightful report about the benefits of employee owned companies. The report has valuable insights for all businesses and I highly recommend it.
A few highlights include:
- Employee owned businesses hold out the potential for meeting two vital objectives, which are too often seen as diametrically opposed. They are vehicles for meeting the productivity challenge but also for generating happiness; a CoCo 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 pay packet.