Infographic: ESO in Europe
Infographic: ESO in Europe
source: European Company Survey 2009
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Best Practice: Gore and Associates
As Gore says themselves: „we have more than 10,000 employees, called associates.“
This, at a first glance, small difference in wording originates from the concept of a latice organizational culture and is in fact having a major impact on the corporate culture and performance of Gore. Every employee at Gore is indeed sharing in the corporate success via the ownership of stocks. A central element, the so-called Associate Stock Ownership Plan, allows the associates to do so. This gives Gore and its associates multiple benefits, among which:
- Opportunities to build up financial security for retirement.
- Improving performance by giving the employees the feeling of being a co-owner of the company that they work for.
Also see Forbes’ Article: Four Ways To Get Your Employees To Care Like Owners http://t.co/kZx0TVg6LZ
It is not without reason that Gore becomes well ranked in various overviews for best companies to work for. Even better, this does not only hold for the US based facilities, but also for most of their worldwide facilities.
Click here to keep reading about Gore as a best practice!
Selected Articles: Why more employee ownership is needed! (from: US News)
We found this interesting US News article on why more employee owned businesses are needed. The article is perfectly describing the similarities and differences between employee and non-employee owned companies.
David Brodwin, the author, points out that: “A truly sustainable economy needs more employee-owned businesses and partnerships.”
He also makes an important point by claiming that: “These businesses stabilize consumer incomes and spending power, stabilize employment, stabilize corporate cash flows, and blunt the extremes of the business cycle. For this to happen we’ll need to find ways to attract more capital into the field, to finance the conversion of existing investor-owned businesses to a new ownership model.”
Feeling Lost? -Why Information is Key
Each business owner or manager will face the point at which he or she needs to start planning his succession. This so-called business succession issue is a major point of interest within the European Union, as it affects the backbone of the European economy, the Small and Medium sized Enterprises (150,000 SMEs fail each year in finding a successor). In this situation, the business owner will become aware of its need for succession. Hence, the path to business transfer has started.
During this phase, the business owner tries to find likely possibilities for a business transfer. Having information available is a key element in this phase, but why? The answers are rather obvious; save money, save time and make better informed decisions. Saving time and money sounds good, though, the question is how this works?
The Effect of Risk in SME Profit Sharing
Some of the effects of profit sharing schemes are that they, for example, can decrease the amount of income fluctuation and increase the income of both employer and employee. The employer and, in the case of a Small and Medium Enterprise (SME), the owner and entrepreneur, is most of the times, if not always, the key-person on taking the decision of implementing a profit sharing scheme.