The Benefits of Employee Ownership

The Benefits of Employee Ownership.

Happy Employee Ownership Day!

Quorum became employee-owned in 2019, using the Employee Ownership Trust model, an indirect ownership model in which a trust owns the majority shares in the business on behalf of all employees.

There is no need for employees to purchase shares and every employee automatically becomes a co-owner in the business and remains a co-owner until they leave.

What was once considered quite an unusual business model has gained popularity in recent years with 1,300 recorded employee-owned companies in the UK by the end of 2022 (Source).

Employee-ownership offers many distinct advantages for businesses and their employees and so to celebrate Employee Ownership Day and to encourage anyone else thinking about taking up this model, we thought we’d outline some of the key advantages!

Being part of an employee-owned company means that we all share the same fundamental core values and are willing to put the work in to ensure the shared success and stability of a business in today’s climate.

Tegan Gladstone-Wallace, Sales

Support Lead

Employee Ownership encourages everyone at Quorum to achieve more, in my opinion! Because we are co-owners, we can all benefit directly from the company’s success.

Katia Nikolova

Operations Manager

Improved Company Performance

Research has repeatedly shown that employee-owned companies are more productive, grow faster, are less likely to go out of business, and tend to outperform their non-employee-owned counterparts (Source).

Any bonus received by Quorumites is dependent on the profitability of the business, so it is in everyone’s interest to ensure the business remains profitable. This reward for the contribution that we are all collectively making means we are working to build a successful company that directly benefits us all, resulting in a culture of continuous improvement and adaptability.

The Quorum board of directors still manages the business on behalf of the employees, with an obligation to ensure it is being run as well and as profitably and sustainably as possible. The Quorum board of directors reports to the board of trustees on a regular basis, so that the board of trustees can take a view on whether the business really is being run for the benefit of the employees.

Top Talent

Quorum has always been proud of the quality of our employees and our low turnover rates and employee-ownership only adds to this. When employees have a stake in the success of the business, they often go above and beyond to ensure its success. It creates a sense of ownership and loyalty among Quorumites, leading to even more reduced turnover rates.

Employee-ownership can also be a powerful tool for attracting and retaining new employees. Our Recruitment Manager, Jackie Begbie, has noted that many prospective employees find the opportunity to become an owner an attractive factor when applying to roles at Quorum.

Employee Ownership, in my opinion, means that each employee has an equal say in the future of the company. Being employee-owned is also becoming a crucial component in a candidate’s decision to join us when recruiting for new employees.

Jackie Begbie

Resource Manager

Being an employee-owned company was a pivotal factor that influenced my choice to join Quorum. The knowledge that every employee shares co-ownership in the business fills me with great satisfaction and reinforces our collective commitment to success.

Keith Atherton

Senior Developer

Long-Term Security

Employee-owned companies tend to prioritise long-term success over short-term gains (source). This focus on sustainability often translates into greater job security for employees.

Employee-ownership allowed Quorum’s founders to safeguard the future of the company and to initiate a succession plan well ahead of any actual exit.

By transitioning ownership to employees through an EOT, the business’s future is protected, as it is not dependent on the decisions of a single owner. The whole essence of this structure is that it should mean that Quorum will never need to be sold in the future – unless a 3rd party comes along and makes an offer we can’t refuse. Employees can feel secure in their jobs, knowing that their interests align with the company’s success.

Each year the Quorum board of directors prepares a comprehensive business plan and submit it for approval by the board of trustees, who then hold the board of directors to account for achieving the plan.

Better Company Culture

The Quorum board of directors are also responsible for deciding how best to encourage and develop an employee-ownership type culture. There is no single definition of what this is, but typically it’s about having employees participate in decision making where possible and appropriate, listening to employees’ ideas and suggestions, and keeping employees informed about the performance of the business on a regular basis.

Employee-ownership therefore fosters a culture of collaboration, transparency, and shared decision-making. Employees feel valued and included in the business’s direction, leading to a more positive work environment and stronger employee morale.

Quorumites are encouraged to play their part in the running of our business and suggestions as to how improvements can be made, sales can be developed, and savings can be made are positively encouraged. The extent of employee involvement is down to individual employees and how they can positively impact the business.

Employee Ownership allows me to participate in the company’s success, driven by tangible incentives and a desire to contribute more. It goes beyond encouraging words from founders, fueling my commitment to our collective achievement.

Robert French

BI Consultant

Employee Ownership makes the future of our company feel secure – that’s been especially important during the pandemic and as the company continues to grow quite rapidly. It’s definitely helped increase confidence in uncertain times.

Pamela Mundt

Marketing Manager

Transparency

Evidence demonstrates that employee ownership delivers better governance and oversight and employee-owned companies are more likely to make strategic decisions that ensure the company’s longevity.

Quorum’s EOT is controlled by a board of 5 trustee directors, 2 employee representatives, 2 appointed by Quorum and 1 independent person. The independent is the Chairman of board of trustees and oversees the operation of the board of trustees. These trustee directors, collectively, act as custodians of the employees and ensure that Quorum is really being operated for your collective benefit.

This therefore encourages a more inclusive decision-making process. Employees have a voice in shaping the company’s strategies and direction, which leads to a broader range of perspectives and ideas. This participatory approach can stimulate innovation and creativity within the business.

There is a lot of transparency on how the business is performing and Quorum has regular company updates and an Annual General Meeting (AGM) where we go through the figures and ‘state of the business’ and everyone has the opportunity to ask questions. Employees feel empowered to contribute their insights and take ownership of their work.

Better Together

As we celebrate Employee Ownership Day, we reflect on the significant impact employee ownership has had on our company. It has empowered us, transformed our culture, and provided us with long-term security. As co-owners, we are committed to continuing our journey together, driving the success of Quorum and reaping the rewards of our collective efforts.