Employee ownership is an increasingly popular model for businesses. In this article, we’ll tell you about the top employee ownership companies to work for in London.
Employee Ownership Trusts (EOTs) offer a really effective way to place a business into employee ownership. EOT’s were created by the government in 2014 as a structure to hold shares in a company on behalf of the employees of the business.
These employee ownership trusts allow companies to sell stakes of the company to its employees and therefore is a form of indirect employee ownership. There are a lot of benefits for employee-owned businesses including significant tax advantages to sellers.
As more businesses are moving to the employee ownership model in order to offer a more attractive proposition to employees, we’ll take a look more details of EOT’s and the best employee ownership companies in London to work at.
What is Employee Ownership?
Also known as employee benefit trusts, employee ownership is a business model whereby a company allows its employees to own part of the business. This works by a company gifting or selling shares in the business to its employees through a benefit trust and can also be used as part of a reward scheme.
There are a number of benefits to the employee ownership model and, some of these are:
- Productivity – When an employee owns part of the company, he or she becomes more invested in the business and will tend to work harder
- Appeal – Employee ownership makes a company more attractive to new talent
- Profit – Employee ownership allows a company to funnel funds into other parts of the business and to scale quickly without having to raise funds
Moving to the employee ownership model has been extremely effective for many companies who have been struggling to attract and retain the talent needed for their businesses to thrive.
Top Employee Ownership Companies to Work for in London
John Lewis
Thought to be one of the first employee-owned businesses in the United Kingdom, John Lewis is a much-loved chain of department stores which sell clothing, homewares and food. Established in 1864, John Lewis prides itself on its employee ownership to the point that its employees are referred to as partners rather than staff.
A spokesperson for the company says, ‘In simple terms, the John Lewis model gives every employee a stake in the company – this means each employee is part owner of the business. John Lewis employees get a share of the group’s annual profits, as well as a say in how the company is run’.
Jobs at John Lewis include customer service positions in its stores and, also, professional roles within its head office in South West London.
Rider Levett Bucknall
Housed in Heron Tower in the City of London, Rider Levett Bucknall is a commercial building management consultant with 200 employees. The employee-owned company, which was founded in 1980, has been recognised as a Top Employer for the past 15 years.
RLB’s Head of People & Culture, Sarah Draper, says, ‘It is an honour to be recognised by the Top Employer Institute for the 15th consecutive year, demonstrating RLB’s ongoing commitment to investing in our people and their wellbeing, which has never been more important. Our policies, practices and inclusive culture enable RLB employees to fulfil their potential, supported throughout their entire career journey and this is recognised by the accolade. The consistent recognition as a Top Employer acknowledges that we are always looking for ways to improve and make every day better for those who work at RLB’.
Mott MacDonald
Headquartered in Croydon in South London, Mott MacDonald is a very well established supplier of domestic boilers. The company, which was founded in 1989, employs 16000 people.
Mott MacDonald has been employee owned since its inception in 1989 and, its 3000 shareholders get to have a say in the projects which the business takes on. Mott MacDonald offers engineering roles as well as office-based positions.
Greenwich Leisure Ltd
Based in Royal Arsenal in south east London, Greenwich Leisure is a Charitable Social Enterprise dedicated to improving physical, mental and social wellbeing within communities.
The company, which is owned by its employees, provides libraries and leisure centers to over 400 locations in the UK and employs 13,500 members of staff in positions ranging from customer service and training to marketing and administration. Greenwich Leisure Ltd was founded in 1993 by Greenwich Council.
Hyperion Insurance
Part of Howden Group Holdings, Hyperion Insurance provides a wide range of insurance products and has been employee owned for the last 25 years. From its headquarters on Creechurch Lane in London, the company has 8000 employees performing a number of different roles and is approaching revenue of £1 billion.
CEO, David Howden, says, ‘As we set our sights on the next 25 years as a business, I have always been clear that we are building a sustainable business with a difference, and as we grow we must ensure that we both stay true to our roots and the culture that got us to where we are today, whilst facing forward with the right proposition for our employees and our clients’.
Richer Sounds
Based close to the famous London Bridge, Richer Sounds has its own iconic reputation as a leading provider of electrical and audio equipment. The company was established in 1978 by Julian Richer and has been employee owned since 2019.
On moving to the employee ownership model, Richer Sounds gifted £1000 to each of his 492 employees as well as handing over a 60% stake in the business to its staff. Richer Sounds offers customer service positions within its 53 UK stores as well as head office roles.
Taking ownership of employee satisfaction…
The businesses mentioned in this article are just a snapshot of the booming employee ownership landscape in the UK. As businesses battle ‘The Great Resignation’ as well as financial hangovers from the COVID-19 pandemic, many companies are discovering the benefits of the employee ownership model, including increased employee satisfaction and productivity and expansion opportunities.
