Are employee-owned companies the wave of the future?

The Magic 8-Ball sez, "If we're smart they will be."

In addition to enhancing employee recruitment, a Harvard Business School study shows that employee-owned companies increase production and profitability while contributing to employees’ dedication and sense of ownership. “From top management to the front lines, the participants in employee-owned companies are partners in enterprise, sharing a single agenda and common goals … employees both learn and drive the business disciplines to help their company do well.”

Another study of ESOP companies during the recession showed they performed better financially than non-ESOP firms, paid their workers higher wages, contributed more to their employees’ retirement, and hired more overall workers.

Data- and performance-driven profit sharing models have long shown that companies who imbue their employees with a sense of ownership out-perform those who don't, so it's no big surprise that employee-owned businesses would be successful. But the longer we allow Citizens United to stand, the more likely bought-and-paid-for politicians will try to legislate this business model out of existence. Why? Because employee-owned companies are much less likely to dedicate a large amount of resources to partisan campaign efforts.

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Comments

Sadly, employee owned

Sadly, employee owned companies don't create the opportunity for outrageous wealth on the part of CEOs and other executives. They protect little people, but who gives a damn about little people?