How to achieve employee ownership for your business
Disadvantages of employee ownership
Guidance
Employee ownership may not suit every business. Before deciding, consider the professional costs, funding requirements, governance changes and financial risks for employees:
- Setting up employee ownership can involve complex legal and financial aspects, requiring professional advice and additional costs.
- There could be 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 regulatory changes could cause tax implications.
- Employees' financial security is tied to the success of the company, which could possibly lead to financial insecurity if the company faces challenges.
Read more on the advantages of employee ownership.