Sue Tumelty, founder of The HR Dept
The main benefit of shared ownership is not related to salary and pay – it’s about creating a successful company, with ongoing profitability, which attracts and retains staff. Having said that, there is a financial benefit to employees in that staff can enjoy a share of the profits of which £3,600 per year can be tax free.
However, the primary benefit is engagement with the company and a say in how it is run. Although the shares are owned by the Employee Ownership Trust for the benefit of all staff, the business is itself run by a board of directors which sets budgets and plans for the future year. They also decide what funds are available to be shared among employees. This profit should be shared equally and fairly among employees. If this trust is abused, then trustees can step in and ensure employee interests are properly represented.
- Sue Tumelty in HRmagazine.co.uk