The Benefits of an Employee Ownership Culture

The Benefits of an Employee Ownership Culture

January 12, 2019
2:37 pm

It is often said that employees are the driving force behind any successful organization. Unfortunately, organizations typically experience difficulties in the areas of talent management and acquisition. In an effort to overcome these challenges, some employers have implemented an employee ownership culture within their organizations. Why have organizations seen increased employee engagement after treating employees like owners?

An employee ownership culture is one where employees feel a sense of ownership over decisions, results and performance. Bâton Global has provided clients with management systems that promote human capital development and promote greater collaboration among employees. What can we learn from employee-owned companies and what are the benefits of fostering an employee ownership culture within your organization?

Communication and Collaboration

In a typical organization, one-way communication is standard as employees aren’t provided enough opportunities to voice opinions and concerns. This is largely due to the hierarchical structure and line of command that exist throughout an organization. In contrast, in an employee-owned organization, there is greater transparency and the hierarchical management structure is flattened.

Employees want to work at an organization where they feel like their ideas and opinions are valued. By embracing an employee ownership-type mentality and treating employees more like equals, organizations will begin to experience improved communication and greater collaboration among employees and leaders.

Employee Ownership Culture

Employee Engagement

When implementing a new strategy, there is often pushback or lack of buy-in from those executing the strategic objectives. However, in an employee-owned company, employees are more likely to be engaged and willing to carry out organizational objectives as they have a higher degree of responsibility for their own financial success.

Organizations don’t need to be employee-owned to have high levels of staff engagement. Instead, they just need to have an employee ownership culture. Is this type of environment, employees have a shared understanding of key goals and objectives, making them more accountable for their behavior. This sense of accountability and ownership drives engagement and productivity.  

Employee Retention

Not only is it challenging to find the right matches for your organization, it is also difficult to retain top talent over long periods of time. Employee-owned companies provide their employees with financial incentives to stay within their organization for long periods of time (e.g. employees must become fully vested before receiving a full payout or those that have a longer tenure with the organization also typically have greater retirement savings due to increases in shares and share price over time). While financial incentives offer one route to employee retention, there are other ways to move employees closer to an ownership mentality. For instance, skills training, ongoing education, and clear paths to advancement also incentivize employees to stay with their current employer. By providing growth and development opportunities, employees come to feel that they are valued and that they play a crucial role in the organization’s success.


Employees are the driver behind the success of an organization. Thus, it is vital to provide them with the support and resources they need to develop and become more engaged. Bâton Global has provided clients with systems that provide opportunities for employees to learn and grow within the organization. 

How can we help your organization engage employees more effectively?

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January 12, 2019
2:37 pm
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