Employee Ownership Australia Gamechanger - The Employee Ownership Australia Index
Employee Ownership Australia and New Zealand (EOA) believes that employee ownership increases employee engagement and work satisfaction and helps improve individual and company performance. Workplaces that are more diverse, inclusive and sustainable more often than not have employee ownership in the mix. International analysis has highlighted that when ownership and participative management are combined, substantial business gains result. However, in Australia the evidence has been a bit thin on the ground; that is, until now.
An initiative of Employee Ownership Australia, the EOA Index tracks the share price of listed companies with high levels of employee ownership and compares it to the ASX200. Companies with a strong employee ownership culture command a significant share price premium over their publicly listed peers.
As the infographic further illustrates, employee share ownership brings financial and social benefits to Australia. Employee engagement and positive workplace interactions are linked. Presence of good equal opportunity practice is much higher where companies in the ASX 200 also have employee ownership. Job security, health and safety and training and development also feature in these companies.
Employee Ownership Australia found that:
Employee-owned companies command a 17% share price premium
They are twice as likely to show clear evidence of equal opportunity systems
They outperform or match the ASX 200 in 3 out of 5 social sustainability factors.
Angela Perry is the Chair of Employee Ownership Australia and New Zealand – you can contact Angela via email firstname.lastname@example.org. For your everyday member support needs contact EOA Communication Officer and Member Secretary - Antony McMullen, email@example.com