It is often said that employees are the driving force behind success of an organization, but organizations typically have difficulties in talent management and acquisition. One solution that organizations have turned to in order to overcome this hurdle is employee ownership. Why have organizations seen increased employee engagement by transferring ownership to employees?
Bâton Global has provided clients with management systems that promote human capital development and great collaboration among employees. How can all organizations learn from organizations benefiting from an employee ownership culture?
In a typical organization, one-way communication exists 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. Employee ownership has been a solution to this issue, as employees see each other as equal and there is greater transparency. All employees are more thoroughly involved in strategy development as they have an increased desire for the organization’s success.
Organizations can provide greater collaboration and improved communication among employees, similar to what is found in most employee owned organizations. Management systems that incorporate all employees can improve communication and employee input within organizations.
In implementing strategy, there is often pushback or lack of buy in from those executing strategic objectives. When employees have ownership within the company, they are typically more engaged in executing strategic objectives as it can directly impact their compensation. Employees with ownership also have higher productivity, as they see their efforts directly impacting themselves alongside investors.
Organizations don’t need to be employee owned to improve engagement. As demonstrated above, it is vital to develop strategy that is inline with values of employees in the organization. If employees understand how organization objectives will positively impact them, they are typically more engaged and productive.
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 incentives to stay within their organization for long periods of time, as employees must become “vested” or stay for a specific time period in ensuring they receive a full payout. Those that have tenure within the organization also typically have greater retirement savings built up due to increases in shares and share price over time. Even though monetary incentives are a great reason to stay with a company, there are other ways in which employees became invested in the organization.
Employees that are given opportunities to grow and develop in an organization tend to have a greater desire to remain at an organization for the long-term. Bâton Global has found that training and development can impact employees at all levels. Employees are able to acquire highly desirable skills that help them take the next step within the organization. Research has found that employees typically perform better when receiving intrinsic value over extrinsic value.
Employees are the driver behind the success of an organization, and it is vital to provide them with the support and resources they need to develop and be engaged. Bâton Global has provided clients with systems that provide opportunities for employees to learn and grow within the organization.