George Osborne’s proposals to pass legislation that allows employees to give up some of their employment rights in return for shares is intended to boost employee engagement.
Even though details at this stage are sketchy at best, YouGov is anti rather than pro the employee-owner initiative. It says 46% of Conservative supporters polled shortly after the announcement think employee-owner schemes are “a bad idea”, while 37% think they are “a good idea”.
However, Scancapture’s employee engagement research comparing employee-owned businesses to our national benchmark shows significantly higher scores for ‘emotional’ engagement, which is up by 9% on the average for 2012. Overall engagement levels are up almost 7% on the UK average.
The largest improvements by UK employee-owned businesses against traditional businesses show strong scores in most questions on communication issues, in particular:
1. I have had a performance review discussion with my manager within the last 12 months (up 12%)
2. I know how my actions affect my customers (up 7%)
3. My company manages change effectively (up 4%)
There are no significant lower scores than the average although pay issues and a lack of staff within employee-owned businesses are generally scored lower than our benchmark data.
So is this a boost for those who support employee-owned businesses? We’ll share more research on this over the coming months.