What Are the Benefits of an Employee Owned Company?

The government recognises significantly higher results of productivity, profitability and growth from EOT businesses and consequently provides tax relief to encourage more businesses to follow this model.

So, What is an Employee Owned Company?

An Employee Ownership Trust (EOT) is where the employees have a stake and share in the company profits.

According to The Employee Ownership Association, over 350 businesses have become EOTs (such as John Lewis, Riverford and Richer Sounds), and at least 50 more are in the process of joining them.

Here Are 3 of the Top Benefits of Being an Employee Ownership Trust:

1 ) A Better and Happier Team

The benefits of working for an employee-owned company are that the employees feel valued as they get to share in the business success.

Because of this shared business model, people feel more engaged and that they can voice themselves with the company’s interest in mind. Any financial success gets shared, so why wouldn’t you feel more motivated to work in an EOT?

This also builds the company’s reputation as this culture of trust and passion attracts new talent too.

2 ) More Growth and Profitability

As a result of happier and more engaged employees, growth and profit are also prominent in EOTs.

They have been shown to have a 15% rise in annual profits when compared to non-EOT companies, making them more profitable overall.

As the employees own the company, they are more productive when it comes to their work. Everyone shares and holds the company vision tighter, which leads to EOTs having a greater resilience, agility and ability when weathering challenging economic situations.

Not to mention the two major tax benefits of income tax-free annual bonuses and not having to pay any capital gains tax liability when you are selling equity. This money can go towards growing the business and supporting its employees instead.

3 ) Better Services for Clients

We decided to become an Employee Ownership Trust at DG Solutions in July 2020 as it not only benefits our employees, but also our clients.

We care that our employees personally share our vision as well as the financial benefits of employee ownership schemes. It’s significantly better for our clients as our team’s passion fuels the work we do for you.

A culture built on trust and community creates greater productivity as every team member plays a central role to provide outstanding secure IT solutions to improve your organisation.

If you want to find out more about DG Solutions, you can learn about our team here or contact us at contact@dgsolutions.io.