The Nuttall Review of Employee Ownership, published by the Department for Business Innovation and Skills (BIS), makes recommendations that could help business owners plan for the future of their company after they retire, ACCA (the Association of Chartered Certified Accountants) has said.
Andrew Leck, head of ACCA UK said: 'The Review cites an excellent example of an entrepreneur who is planning for retirement, has no family who could take the reins and doesn’t want to sell to a competitor. Employee ownership can smooth this transition. Ensuring that the business continues after the owners’ retirement helps to retain competition in the market and that is good for consumers and the economy.
'There are many competitive advantages of employee ownership including greater employee engagement and commitment. All business owners realise the important role that employees play in the success of a business, and they also know the cost of having a disengaged workforce. Employee ownership can help make a business even more successful. Business owners should not be put off exploring the benefits of ownership.
'The recommendation in the report for BIS, working with ACAS, to encourage employer and employee groups to develop a voluntary Code of Practice, setting out best practice on requesting and agreeing employee ownership in a company, is a good first step in this regard.'
The Nuttall Review was announced by Norman Lamb, Minister for Employment Relations and follows on from the Government’s drive to highlight the concept and benefits of employee share ownership.
- To read The Nuttall Review, click on the link in the 'Related Links' section, left of this article.