EOA launches new guide on employee ownership in public services
EOA launches a new guide for organisations in the public services exploring ‘spinning out – a transition to employee ownership
Friday 3rd July 2015 is UK Employee Ownership Day, which is now a significant event in the national business calendar, delivered by the Employee Ownership Association (EOA). To coincide with the day, the EOA have teamed up with partners Prospects, Fieldfisher and the Chartered Institute of Public Finance and Accountancy (CIPFA) to develop and launch a new guide on employee ownership, which has been designed specifically for public sector organisations.
Employee ownership (EO) is a business model in which employees have a significant stake in their company, have a say in how the business is run and directly benefit from its success. Research has shown that employee-owned businesses continue to outperform their non-EO counterparts in terms of productivity and profitability, and through their high levels of engagement across the workforce
EO is the fastest growing form of business ownership in the UK. An important part of this growth is within our public services. These ‘spin out’ businesses currently operate in a range of sectors including youth services, schools support, health and social care.
Iain Hasdell, Chief Executive of the EOA said:
“This new guide is essential reading for all those interested in employee owned public service spin outs, and we are delighted to launch it on EO Day 2015. These organisations are performing brilliantly, and play an important part in the ongoing growth of the employee owned sector. We are grateful to our partners at Prospects Fieldfisher, and CIPFA for their help and support in the production of this important guide.”
Nick Bell, Chief Executive at Prospects commented:
“Prospects is pleased to be have been asked to author the new guide for organisations in the public services exploring employee ownership. As the 11th largest mutual organisation in the country, and one of the first public service mutuals we are uniquely placed to share our experiences and the benefits employee ownership has brought to our business and our colleagues. More than £1.5bn of contract value is currently delivered by public service mutuals, and this is set to increase with the new government’s plan to introduce a ‘right to mutualise’ in the public sector.”
Rob Whiteman, Chief Executive of CIPFA, said:
“Employee ownership is an increasingly important organisational model for the delivery of public services.
“Evidence shows that they can help improve productivity, staff morale and innovation which ultimately leads to better value for money services for taxpayers.
“Finance professionals are critical to the development of sound business plans and accountants, senior managers and non-executives will find this guide to be an invaluable resource on the benefits of setting up an employee owned public service mutual.”
Neil Palmer, partner at Fieldfisher said:
“Fieldfisher has worked with a number of pathfinders that have shown how moving to employee ownership succeeds in engaging staff to deliver better public services. We are delighted to contribute to this new guide, which will help all those contemplating this change. Public service spin-outs are a growing part of the EO sector, and this guide will maintain this momentum.”