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.



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?