Many people are aware we use Employee Share Schemes (ESS) as a Business Succession and Exit Planning tool to help retain key people, to improve SME performance, to build the team culture and engagement. They are also well known as a potential exit strategy where the founders sell the business over time to the employees. https://successionplus.com.au/blog/employee-share-ownership-plans-esop-funding-option/

What are the issues that buyers are worried about when they’re looking at your business? What turns them away quickly? How do you maximise value from a buyer’s point of view? http://ow.ly/6kZn30ld6fm

Recent research published by the University of York in the United Kingdom has found that in comparison to several other employee engagement models, employee ownership was a KEY FACTOR in engagement due to the presence of psychological ownership.

In psychology, ownership is the feeling that something is yours.

Psychological ownership is distinct from legal ownership: one may feel that one’s cubicle at work is theirs and no one else’s (i.e. psychological ownership), but legal ownership of the cubicle is actually conferred to the organization.

A central belief of psychological ownership is that employees share the long-term interests of the business and its owners.

Psychological ownership refers to the experience of possessing and being psychologically tied to an entity. Such feelings of ownership are fundamental to human life. Every day, we interact with a variety of objects we own, both material and immaterial. The state of psychological ownership is not only cognitive but also affective: simply by calling an entity — whether an object, another person, or a job — “mine” suggests that we have an emotional connection to it.

Employees often express a desire for greater psychological ownership of their work, believing this will improve their job satisfaction and happiness.

This factor added an additional dynamic to engagement as the meaning of work was influenced by employee ownership. “Family culture” was present in the organisations which drove employee ownership values. Social, affective, and intellectual engagement and vigour, dedication and absorption were found to be influenced by the presence of employee ownership.



Employee Ownership

When employees are also owners, their relationship with the organisation is changed and this affects the way they think and behave. Theory and research on employee ownership suggests that employee-owners exhibit behaviours that are intended to enhance the financial status of the organisation. These include improving their job performance, finding ways to cut costs and suggesting innovative ways to increase revenues.



Employee Engagement

The study concludes with two key statements; that employee engagement “enhances the experience of employee ownership and employee ownership influences employee engagement.” Finally, that “employee ownership plans encourage employees to think and act like owners, and this enhances organisational performance”.

How do you encourage psychological ownership and an ownership mindset in your organisation?

"When employees are also owners, their relationship with the organisation is changed and this affects the way they think and behave. "

We are hosting these free breakfast seminars for business owners who are interested in implementing an Employee Share Ownership Plan (ESOP) as a means to attract, retain and motivate key employees.

Click here to reserve a spot. http://ow.ly/Hnx830kvxqc

When employees are also owners, their relationship with the organisation is changed and this affects the way they think and behave. http://ow.ly/kxzB30ks4uW