The following is an excerpt from an article originally published in Harvard Business Review, featuring Ownership Works:
“U.S. worker engagement has stagnated for decades, with more than two-thirds of workers feeling detached or disengaged from work. To reverse the trend, many executives have strived to build an “ownership culture,” hoping personal responsibility will drive productivity. Yet most omit the most vital ingredient, actual ownership. We spent the past four years studying companies that committed to this missing piece, extending equity to all employees. While broad-based ownership isn’t new, a recent surge led by private equity has made it a potent economic force. Since 2022, more than $1.3 billion has been distributed to 41,000 non-executive employees, with projections exceeding $20 billion in the coming decade.
The payoff is mutual. Preliminary data from the nonprofit Ownership Works shows that deals with ownership programs achieved a multiple on invested capital (MOIC) 1.6 times higher than the market median. These programs drive operational improvements, from margin expansion to reduced attrition, by cracking the code on the “ownership mindset.”
Read the full article on Harvard Business Review.
