Partner Article

Opening the board room to employees - is it a good idea?

This week an IPPR report made the case for profit-sharing and employee ownership - suggesting it would boost productivity and profitability.

It said the continued squeeze on living standards could be remedied by shared rewards, and remove the burden on public resources.

The call will undoubtedly raise suspicion among many SMEs, but - do IPPR have a point? The report suggests employee ownership might be attractive for mid-sized firms at the point of business succession - particularly those who feel uncomfortable about selling staff, stake in the local community and their brand to private equity.

Of course, profit-sharing and employee ownership can constitute two very different models - and building a democracy where employees have a say in strategic decisions may not necessarily accompany profit-sharing.

Would it generate value for taxpayers if profit-sharing was more common place among British firms?

This was posted in Bdaily's Members' News section by Tom Keighley .