John Lewis currently leads the market in staff-run business, with a record-breaking 76,500 shareholding employees.
The deputy prime minister plans to give employees the automatic right to purchase shares in whatever firm they work for. This would encourage a democratic business structure and diffuse the locus of power across a wider area.
From an employer point of view, the new proposal could unlock a previously untouched store of ideas and knowledge. By encouraging employees to speak their minds and offer their opinions, employers will be gaining advice and insight they may otherwise have overlooked.
Businesses that engage their employees are often more successful than their competitors, with lower absenteeism, less staff turnover and more productivity and loyalty.
The talks are part of a gradual push towards ‘responsible capitalism’ by taking the pressure off the top dogs and curbing executive pay.
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