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As CEO and founder, I recently decided to transform ZenToes into an employee-owned company. I’m already seeing incredible advantages for my team and the entire company.
In this model, all employees own a share of the company’s capital, aligning employee interests with the company’s overall goals and success. On ZenToeswe found it essential to foster a sense of ownership and shared purpose to ultimately drive innovation, improve employee well-being and satisfaction, and contribute to the distribution of the company’s success.
In this text, I’ll discuss the advantages of adopting an employee-owned business model, as I have personally experienced in recent months since switching to ZenToes. I’ll show you ways this may lead to more engaged employees, higher company performance, and a stronger, more resilient organizational culture.
1. Employee involvement
Ultimately, I discovered that there is nothing incorrect with employees knowing that they are a part of their success. Giving employees a stake in your company provides an added incentive and layer of security that helps promote overall engagement and increase productivity.
Employees know that they are truly essential to the success of our company and that the success of ZenToes is something from which they directly profit.
2. Collaborative work culture
When everyone is invested in the company’s success – directly benefiting when the company does well – collaboration comes naturally. At ZenToes, the employee ownership model supports the evolution of an extremely collaborative work culture where employees feel supported in their work and personal efforts.
Competition among employees is replaced by cooperation and deep respect for the role of each individual in the company’s success.
3. Retention rates
Employee retention is often key to firms achieving milestones inside goal time frames. While many aspects similar to workplace culture, employee happiness, etc. influence retention rates, it is clear that providing equity and ownership to employees strengthens employee commitment to the organization and its goals and leads to higher long-term retention rates.
With an employee-owned model, everyone begins to recognize the importance of working strategically towards long-term goals. Instead of simply focusing on immediate results, they view each project and task as a stepping stone towards a larger common goal. In short, they invest in their future in the company and their results greatly profit from it.
4. Productivity
Employees who own a company have a vested interest in their performance and success. They attach great importance to their work, think creatively and work hard to achieve results effectively. Ultimately, when everyone is committed to their very own productivity and collaboration, the entire company wins.
5. Resilience and continuity
All businesses experience ups and downs, but true resilience and business continuity often depend on your team and their commitment to staying the course. The bond and shared commitment to company goals that come with an employee ownership model inherently supports a company’s ability to adapt and grow long-term.
6. Mental health
Giving employees a sense of ownership, responsibility and reward in their work lives directly supports their overall happiness and mental health. It is very difficult to remain satisfied in a workplace where you are feeling unappreciated. The employee ownership model ensures that employees’ work and commitment are appreciated.
7. Community initiatives
When all employees are co-owners, something amazing also happens: Your team and organization unite around shared values and vision. Identifying your company’s values will enable you to work as a team to support causes through social initiatives that talk to those values, support team building and strengthen your brand.
With ZenToes, we have come together as a team to develop long-term CSR initiatives that support our mission to provide access to foot care and an lively lifestyle for all. As a result, our team works with various organizations to offer sponsorships and scholarships for local running and walking events.
8. Inclusive and democratic decision-making
Employee shareholders have a voice in decision-making in the company. This democratic and inclusive process is ideal for supporting the development of a company culture where everyone feels heard, included and has a say in driving the company as a whole.
It’s fun to own and it’s good for business staff. The employee-based model is price considering for business owners looking for a model that supports employee retention, ensures team unity, and drives business growth.
Make sure you hire the right legal team to ensure the model is arrange to profit each employees and the company – for example, employee stock may qualify for QSBS (Qualified Small Business Stock). They could potentially not require employees to pay capital gains tax if the rules were still in place when their wages were paid. Your employees and your company will thanks.