The following is an excerpt from a viewpoint developed by Manulife Investment Management in collaboration with Ownership Works:
“Broad-based employee ownership plans can create better business outcomes for the companies that implement them. Alignment between employees and the businesses they help build is strengthened when employees have a meaningful stake in company performance outcomes. This alignment can boost engagement and motivate employees to think and act like owners. This is especially relevant at a time when employee engagement in the U.S. is at a 10–year low, with only 31% of employees engaged at work. Early data from Ownership Works finds that more than 75% of companies with a broad-based ownership plan saw improvements in engagement scores.
Fostering more engaged, ownership-minded teams can also drive improved company financial performance. Gallup reports that engaged teams drive 18% higher sales, 23% higher profitability, and 21-51% lower turnover. Shared ownership can therefore contribute to both workforce engagement and long-term value creation. This alignment is particularly important in a longevity context, where sustained productivity and workforce engagement over longer careers are increasingly essential.”
Read the full piece on Manulife’s website.
