Millennials tend to favor employee ownership because it aligns with their values of transparency, accountability, and a sense of purpose in their work, allowing them to feel more invested in the company’s success, participate in decision-making, and directly benefit from the company’s profits through share ownership, leading to higher job satisfaction and motivation.
Given recent conversations about young people and their interest (or not) in employee ownership, the following might be useful therefore.
Key reasons why millennials like employee ownership:
- Greater sense of control and agency:
Employee ownership gives millennials a voice in the company’s direction and allows them to feel like they are actively contributing to its success, not just following orders.
- Transparency and open communication:
Employee-owned companies often practice greater transparency regarding financial information and decision-making processes, which aligns with millennials’ desire for open communication.
- Alignment with personal values:
Millennials often prioritize social responsibility and sustainability, and employee ownership can be seen as a way to contribute to a positive social impact.
- Financial benefits:
Owning a stake in the company allows millennials to directly benefit from the company’s profits through share appreciation, which can be a valuable asset for their long-term financial planning.
- Stronger company culture:
Employee ownership can foster a more collaborative and supportive work environment, where employees feel a stronger connection to their colleagues and are more likely to prioritize the company’s success.
For more on this topic, see the report ‘Busting the Millennial Myth – The Power Of Purpose – An inquiry into the millennial generation’s attitude towards working in employee-owned businesses and how they can prosper in millennials’ hands’.
To quote: ‘Research shows that the EOT appeals to the values of a millennial workforce and that employee-owned businesses are deemed to be more trustworthy.
The benefits to employees are mostly found in the altered culture of an employee-owned business where long-term thinking, transparency, and collaborative behaviours tend to result in higher levels of innovation, employee well-being and greater job satisfaction; all-important following the pandemic’.
