unLTD spoke to local business about their thoughts on Employee Ownership Trusts and how they can benefit both business owners and employees
With more and more companies exploring the benefits of an employee-owned business model, the shared ownership structure is becoming increasingly popular. Companies like leading tax advisory firm YesTax are adapting to Employee Ownership Trust (EOT) models in response to cultural shifts in ethos, values and employee benefits.
According to YesTax, its newly established model secures the foundations on which YesTax has been built and gives its employees a shared ownership structure from which they will directly benefit. Like other companies that have embraced an EOT, YesTax is proud to reinforce the company’s unique culture by acknowledging its employees’ hard work and commitment to the company.
Director of YesTax, John Moxon, said: “When YesTax was incorporated it was underpinned by its four-E philosophy: Expertise, Ethics, Ease and Engagement. By becoming employee-owned, we have added a fifth ‘E’ and in the process have become a genuinely unique business within the tax advisory sector. Building a business and passing it to the staff who have worked so hard to ensure its success is immensely satisfying.”
With this in mind, we chatted with other local businesses across the region that have shifted to the employee-first approach, where inclusivity, personal motivation and investment are intertwined with company culture.
Local ventilation and heat recovery company Airmaster became an EOT in 2021, creating a unified work environment for all employees.
Airmaster’s managing director Lisa Pogson said: “Airmaster is a family-feel business with a close-knit team, the ethos of employee ownership was already there.”
“The possibility of trade sale was on the table, before Airmaster opted for employee ownership – inspired by the success of other employee-owned businesses locally, such as Gripple – and created an employee ownership trust.
“We were delighted to transition to employee ownership and reward the staff for their commitment to the company.
“I feel really positive about what we have done. I’m so glad we didn’t sell it to a buyer and we kept it in the team, because we’ve put all the effort and hard work in. We had the possibility of being bought out and it felt like it wouldn’t stay with the same Airmaster ethos.”
HLM Architects’ move to employee ownership also came in 2021, with managing director Karen Mosley saying: “Since transitioning to an EOT, we’re more connected than ever before, having introduced more ways for views and voices to be heard.
“Everybody has become much more innovative in their thinking, exploring the ‘why’ behind the things we do, leading to greater outcomes.
“Our clients recognise they’re dealing with individuals who are influencers in their own business, who are empowered to be able to voice opinions, shape
decisions, and bring that little bit extra. This transition gives our clients more certainty about our longevity.”
Becoming an EOT in January 2022, NEC are approaching their first year as an employee-owned business.
Chairman of NE Components, Vince Middleton, said: “As a third-generation family business our people have always been an important part of our company and the decision to become an Employee Ownership Trust rewards our team and gives them a say in the future development of the business.”
David Greenan, sales director at NEC added: “The move to being an Employee Ownership Trust is part of our succession planning strategy to secure the future of the business. I have been with the business for 48 years, having started as an apprentice in 1974, I am planning to retire in the next couple of years and so we are bringing through people to lead the business.
“As part of the investment in what NEC sees as the future management team of the business, both project manager, Paul Wildgoose and newly qualified engineer, Matt Keeley have now started an online MBA. This will assist both of them in their new roles as Paul is now on the board of trustees as part of the new Employee Ownership Trust and Matt has joined the operational board of the business.”
No stranger to sharing business success, local EOT frontrunners Gripple first invited employees to buy shares in 1994. In 2011, Gripple transitioned to its GLIDE employee ownership model which saw the purchase of shares become a mandatory requirement after a year in the business.
Gripple’s GLIDE chairman, Michael Hodgson, said: “Gripple advocates its pioneering ownership model as a more inclusive way of doing business, driving growth, engagement and resilience in a culture of innovation and custodianship.
“The business places its employee ownership model at the heart of its success, with EO driving a culture of direct responsibility. With owners at every level of the business, the onus is on each of its 1,100 members across the globe to drive sustainable growth, a focus on innovation and enduring support for the communities it serves. The direct ownership model gives its people skin in the game and a vested interest in ensuring the business continues to succeed, and it’s here for the long term. When the business succeeds, everyone benefits.
“EO is the driving force behind Gripple’s continued growth and success, with the business generally achieving 15 per cent sales growth per annum. The 50 largest EO businesses are enjoying productivity rates which track at twice the national average, a product of the sense of purpose that is created in a culture of collective ownership. People in EO businesses also tend to stay, with Gripple’s current retention rate tracking at over 90 per cent.”
On the other side of the same coin, local manufacturing company Agemaspark chatted about how employee ownership might be the way forward for them. Managing director Paul Stockhill said: “I have been lucky to have spent my 50 years across many different businesses in various roles. 20 years ago, Agemaspark was born, and we have manufactured products for the international space station, put parts on Mars, and we even export to China.
“We’ve had an apprentice scheme in the business for the last 20 years as we saw there was a huge skills gap in engineering particularly. The majority of our staff are under 30 years old and then we have others that are over 60, with nothing really in the middle, so we are facing a problem in a few years once the older generation in our team begin to retire. An EOT would enable us to ensure we protect our values, ethos, culture and independence while passing the business onto the managers that have worked their way up over the last 20 years”
If there’s anything pressing on your mind, why not have your say? Get in touch on editorial@unltdbusiness.com
