How to achieve employee ownership for your business
Disadvantages of employee ownership
Guide
Employee ownership, while offering a range of benefits, also presents some potential disadvantages:
- Setting up employee ownership can involve complex legal and financial aspects, requiring professional advice and additional costs.
- There is potential for conflict and disputes due to differences in opinions and priorities amongst employee-owners.
- There is a risk of underperformance if employees lack specific business experience.
- Introducing a new employee ownership model could disrupt the company culture and create challenges in decision-making.
- Employee ownership can potentially offer tax benefits, but potential regulatory changes could cause tax implications.
- Employees' financial security is tied to the success of the company, which could potentially lead to financial insecurity if the company faces challenges.
Read more on the advantages of employee ownership.