What if employees had a share of the company?
Yesterday saw the start of the 2018 Labour Party Conference with shadow chancellor, John McDonnell, announcing plans for new, transformative proposals for Britain’s workplace and economy. He proposed that every company with more than 250 employees would have to create an “Inclusive Ownership Fund”, transferring a least 1% of their shares into the fund every year, up to a maximum of 10%. This would see employees receiving an appreciation token of up to £500 as a dividend.
Whether you think this is another burden for businesses that are already anxious about life post-Brexit, or that it makes sense to do what companies like John Lewis & Partners already does, it raises a really interesting point.
The idea has effects far beyond monetary gain. Receiving a share - even just a small percentage - shows appreciation and value for the work people do.
It provides real core evidence that what an employee does, day-in day-out, is making a real difference. So, instead of keeping that potentially valuable idea to themselves, employees may be more inclined to share it, as they know that their opinion is valued. They may also be more motivated to put that little bit of extra effort in - knowing that what they do is appreciated and makes a difference to the success of the company - a company in which they feel included, involved and valued.
While £500 could help a colleague with Christmas costs or a well-earned weekend away, it could also buy you much more - a workforce who feel appreciated and engaged.
What are your thoughts?