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Growing evidence of economic inequality has garnered much political and media attention. However, declining rates of entrepreneurship have not received nearly as much consideration as globalization, technological change, and stagnant wages. Uncaptured by the mainstream dialogue is a more than 30 percent drop in the country’s rate of new business creation during the economic collapse and a tepid recovery following the recession. And business closures now outpace startups for the first time since the data started being collected in the late 1970s.
Worker-ownership must play a fundamental role in solving this lingering crisis. Worker-ownership is an entrance into business ownership for many people who would not likely start or own a business by themselves. It rekindles the entrepreneurial spirit - an essential ingredient for a company to grow and thrive - that has dissipated over the last few decades as the link between productivity and reward has grown more fragile for many employees. The establishment of an ownership plan at Cost Cutter Stores - a grocery chain based in Bellingham, Washington - raised employee expectations about their role in the company.
has gone up as a result, reported as being “off the charts” according to measurements taken by Associated Grocers.
The experience of Cost Cutter demonstrate that worker ownership is more than a feel-good measure. Giving workers an ownership stake and an authentic voice in the workplace furthers business performance. Research shows that companies with employee ownership – like employee stock ownership plans, or ESOPs, and worker cooperatives – have far lower turnover and more productivity.
need to know about this emerging policy
For small businesses, where employees often work long hours and are earning more than $455 per week, the proposed rule could be significant. If multiple employees are routinely working beyond normal work hours, overtime pay could reasonably increase personnel expenses.
Building the Case for Worker Ownership
Productivity has gone up as a result, reported as being “off the charts” according to measurements taken by Associated Grocers.
The experience of Cost Cutter demonstrates that worker ownership is more than a feel-good measure. Giving workers an ownership stake and an authentic voice in the workplace furthers business performance. Research shows that companies with employee ownership – like employee stock ownership plans, or ESOPs, and worker cooperatives – have far lower turnover and more productivity.
need to know about this emerging policy
For small businesses, where employees often work long hours and are earning more than $455 per week, the proposed rule could be significant. If multiple employees are routinely working beyond normal work hours, overtime pay could reasonably increase personnel expenses.