Today (Friday 3 July 2015) is UK Employee Ownership Day, which is now a significant event in the national business calendar, delivered by the Employee Ownership Association (EOA). To coincide with the day, the EOA have teamed up with partners Prospects, Fieldfisher and the Chartered Institute of Public Finance and Accountancy (CIPFA) to develop and launch a new guide on employee ownership, which has been designed specifically for public sector organisations. Download the guide here.
Employee ownership is a business model in which employees have a significant stake in the company they work for. Employees have a say in how the business is run and directly benefit from its success. Research has shown that employee-owned businesses continue to outperform their non-EO counterparts in terms of productivity and profitability, and through their high levels of engagement across the workforce.
Businesses that have already made the transition to employee ownership, or ‘spin outs’, currently operate in a range of sectors including youth services, fire and rescue, health and social work.
Iain Hasdell, Chief Executive of the EOA said:
“This new guide is essential reading for all those interested in employee owned public service spin outs, and we are delighted to launch it on EO Day 2015. These organisations are performing brilliantly, and play an important part in the ongoing growth of the employee owned sector. We are grateful to our partners at Prospects, Fieldfisher and CIPFA for their help and support in the production of this important guide.”
Nick Bell, Chief Executive at Prospects commented:
“Prospects is pleased to be have been asked to author the new guide for organisations in the public services exploring employee ownership. As the 13th largest mutual organisation in the country, and one of the first public service mutuals we are uniquely placed to share our experiences and the benefits employee ownership has brought to our business and our colleagues. More than £1.5bn of contract value is currently delivered by public service mutuals, and this is set to increase with the new government’s plan to introduce a ‘right to mutualise’ in the public sector.”
Rob Whiteman, Chief Executive of CIPFA, said:
“Employee ownership is an increasingly important organisational model for the delivery of public services.
“Evidence shows that they can help improve productivity, staff morale and innovation which ultimately leads to better value for money services for taxpayers.
“Finance professionals are critical to the development of sound business plans and accountants, senior managers and non-executives will find this guide to be an invaluable resource on the benefits of setting up an employee owned public service mutual.”
Neil Palmer, partner at Fieldfisher said:
“Fieldfisher has worked with a number of pathfinders that have shown how moving to employee ownership succeeds in engaging staff to deliver better public services. We are delighted to contribute to this new guide, which will help all those contemplating this change. Public service spin-outs are a growing part of the EO sector, and this guide will maintain this momentum.”
To find out more about the new guide, employee ownership or EO Day 2015 please visit: www.employeeownership.co.uk and @employeeownership.
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Notes to Editor
Interviews available on request.
Recognised by policy makers as the voice of co-owned business in the UK, the Employee Ownership Association is a network of more than two hundred companies from significant to majority employee ownership, or plans to become co-owned.
Formed in 1979, the Association’s role is to serve and represent its member companies, and promote the spread of employee ownership in the UK economy.
The Prospects Group is a dynamic and enterprising organisation providing a wide range of education, employment and skills services in the UK and internationally. At the heart of what we do is the drive to improve the life chances, skills and aspirations of everyone we support. Each year we support more than 500,000 young people and adults.
Prospects is the 13th largest employee owned mutual in the UK and was one of the first public sector mutuals. We are proud to be one of a small number of organisations awarded approved specialist adviser status.
For more information please visit: www.prospects.co.uk
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Fieldfisher is a European law firm based in the City of London. It has been at the forefront of developments of employee co-ownership and mutual structures for more than a decade, advising on the spin out of numerous public services into innovative new structures. Its experienced team includes Graeme Nuttall, the Government's independent legal adviser on employee ownership, who published his influential report "Sharing Success – The Nuttall Review of Employee Ownership" in 2012.
For any questions relating to EO Day or requests for further information or interviews, in the first instance please contact: