EO Knowledge Programme

People Powered Growth Report

Breakdown of Findings

A Healthier Economy

EOBs not only fuel economic growth but also create a healthier and more fulfilling work environment, leading to elevated employer satisfaction, motivation, and work-life balance.

Through prioritising the holistic health and happiness of their employees, EOBs are champions of a healthier and more rewarding work experience.

As well as being good for the business, EOBs generate multiple benefits for their employees.

They go further to protect and promote the health and wellbeing of their workforce and are rewarded by employees who report higher levels of job satisfaction:

EOBs invest more in employee health and wellbeing

48% of EOBs offer supported access to private healthcare compared to 34% of non-EOBs; and more than twice as many EOBS (74%) provide access to mental health resources than non-EOBs (34%).

EOBs do more to protect employee quality of life

EOBs are more likely to offer flexibility in contracted hours (61% vs 36%), allow employees to work remotely (84% vs 47%) and almost 3 times more likely to support career breaks or sabbaticals (47% vs 16%).

EOBs are stronger on health and safety

Though incidence rate for all types of business are low, there is a significant difference between EOBs (0.1%) and non-EOBs (0.9%). 

EOBs create happier employees

83% of those surveyed reported increased employee engagement and motivation since adopting an EO model and 73% reported increased job satisfaction.

A Fairer Economy

EOBs are ensuring work pays for their lower income earners, protecting their employees’ financial wellbeing and guaranteeing fair opportunities to progress.

By sharing ownership right across the workforce, this inclusive business model is chipping away at wealth and income inequality:

EOBs pay a fairer basic wage

EOBs tend to have a higher minimum annual wage than non-EOBs by around £2,900 (after controlling for firm size); EOBs are more than twice as likely to hold accreditation for “fair pay and reward” (e.g. Living Wage Employer) compared to non-EOBs (37% vs 15%).

EOBs do more to look after the financial wellbeing of employees

EOBs are more likely than non-EOBs to provide cost of living support, with more than a 50% difference in levels of financial wellbeing support, one-off bonus payments and salary sacrifice schemes.

EOBs pay more attention to diversity and inclusion

EOBs are more than twice as likely to have diversity and inclusion (D&I) policies in place covering recruitment, career progression, gender pay gaps, support networks, representation in senior roles and establishing a disabled and neurodivergent workplace

EOBs share more of the value that employees generate

Dividends/bonuses are more than twice as large in EOBs than non-EOBs.

EO addresses inequality by spreading ownership across hands of diverse groups

In an economy where official data suggests the majority of business owners are white and male, EOBs put ownership into the hands of diverse groups who typically don’t own businesses.

A Higher Skilled Economy

In addition to doing more to invest in developing on-the-job skills, it is a powerful feature of EOBs that they share high levels of critical business information and provide channels to directly influence decision-making, which in turns supports employee learning and contribution:

EOBs invest more in training and skills

93% of EOBs invested in on-the-job learning and development training in the last 12 months compared to 85% of non-EOBs; EOBs spend an average of £38,000 (12%) more on training per company compared with non-EOBs. 

EOBs help employees learn about their businesses

EOBs are more likely to have critical business information shared than non-EOBs with them in every category surveyed (costs, decision-making by the senior team, investments, performance, new business and sales).

EOBs encourage employees to participate in how their businesses are run

Some EOBs go further than others in enabling participation: employees can influence strategic decisions at least once per month in 78% of EOBs compared to 59% of non-EOBs; EOBs (69%) are more likely than non-EOBs (33%) to have dedicated employee representatives in place.

A More Community-Focussed Economy

Alongside contributing more to the economy and to support their employees, EOBs go notably further in supporting and promoting the resilience of their local communities:

• EOBs are also considerably more likely to make charitable donations than non-EOBs (86% vs 55%). EOBs in aggregate give over £500m more per year than non-EOBs.
• EOBs are significantly more likely than non-EOBs to provide community support, such as advocating on behalf of local community causes, and more than twice as likely to offer volunteering days as non-EOBs (43% vs 15%).

A More Resilient Economy

EOBs have proven consistently resilient through the national economic challenges of recent years, retaining more stable profits, being less likely to make employees redundant and sustaining levels of investment in their products and services:

EOBs offer greater job security

Employees at EOBs are five times less likely to be made redundant in the last three years compared to non-EOBs (that figure goes up to eight time less likely for smaller firms).

EOBs are more optimistic about the economy

Only 4% of EOBs are likely to decrease future R&D investment compared to 10% of non-EOBs.

EOBs are more financially resilient

EOBs were less likely to see their profits decline over the last five years (14% vs 25% for non-EOBs) including through pandemic and supply chain crises.