Published on: June 10, 2019by Kevin Coupe
Fast Company has a piece about how, in a time when “near-record-low unemployment has companies fumbling to find the best ways to recruit and retain workers,” the best way for companies to score is to “give them a real stake” and share “some of the profits and even ownership with the men and women who are fundamental to their companies’ success.”
The piece goes on to point out that “a recent government survey found that vast majorities of respondents across the political spectrum prefer to work for an employee-owned company than an investor- or state-controlled business.”
It is worth reading the story,
which notes that “sharing the fruits of a company’s success with workers makes the latter happier while helping - or at the very least not hurting - the former’s profitability.” Companies that shared their success with employees through a variety of ways, ranging from employee stock ownership to profit sharing, tended to perform “statistically better than the others on a variety of measures.”
Now, to be fair, the article’s authors have a vested interest - two of three have roles at Rutgers University’s Institute for the Study of Employee Ownership and Profit Sharing. (If they’d come up with the opposite conclusion, that;’s be the real surprise.)
And, in the interest of full disclosure, one of the reasons I liked the story is that it does reinforce my own opinion - that companies and business leaders need to be more cognizant and rewarding of the people on the front lines … the people who actually make the stores work.
When that start happens on an even broader scale that it does now … well, that’ll be an Eye-Opener.
- KC's View: