What is an Employee Ownership Trust?
Trusted Technology Partnership, previously Healthcare Computing, recently announced its brand new status as an Employee Ownership Trust. This relatively new sector of the UK economy is quickly expanding with over 285 EOT companies formed in the last year. But what exactly is an Employee Ownership trust? Keep reading to find out…
What is an Employee Ownership Trust?
To put it simply, an Employee Ownership Trust means that the employees of a business have the benefit of shareholding, but without the responsibility of actual share ownership. Transitioning to an employee ownership business model means that the company's employees are now the beneficiaries of the trust, that they have the benefits of shareholding and a direct stake in and influence over the company's future success.
EOT’s are beneficial business models because this structure supports the interests of the employees as well as the company. This allows organisations to make decisions that prioritize the long-term success and sustainability of their business whilst ensuring employee satisfaction and boosting morale. EOT’s offer a whole range of benefits to employees, managers and clients and we are proud of our new status.
Some familiar examples of Employee Owned businesses are: John Lewis Partnership, Mott Macdonald Group and Go Ape!. Here’s what they have to say about their employee-owned status….
“There are hundreds of employee-owned businesses across the UK, which means there are thousands of employee-owners. Businesses range from manufacturers to community health services, to insurance brokers. Together they deliver 5.2% of UK GDP annually, with this contribution growing. They are united by an ethos that puts people first, involving the workforce in key decision-making and realising the potential and commitment of their employees.”
“As much as we have grown, a feeling of togetherness resonates among our colleagues. We are proud to be one of the largest employee-owned companies in the world, meaning that our employees have the power to shape our future. This model also empowers us to invest in all the core ingredients of excellence, all key drivers for learning, progression, and digital innovation.”
"We are delighted to be part of this thriving part of the UK economy, and to see that, like us, many businesses are choosing Employee Ownership because they want to do the best for their employees, as well as their customers, environment, communities, and partners."
Why We Decided to Become an EOT
Trusted Technology decided to become an EOT because of all the benefits this business model offers. The founding shareholders were also keen to realize their investment in the business and an EOT was the best option to support and secure the business for the future. Becoming an EOT also posed less risk than selling our business on the open market and rewarded all our colleagues for their hard work over the years. We also rebranded from Healthcare Computing to Trusted Technology Partnership to celebrate this change and better represent where the company is now.
Employee Ownership Trusts are a growing part of the UK economy, and we’re very proud to be a part of this exciting movement. As we move through our transition to an EOT and rebranding, there are many changes still to come so stay tuned for more exciting announcements…