Nuttall Review of Employee Ownership – July 2012

The Nuttall Review, published in July 2012, summarises existing research on the benefits of employee ownership, identifying the key barriers to uptake of employee ownership, with a view to making a number of recommendations of how to reduce these barriers.

Its recommendations, which are widely supported by the Government, include the expansion of employee ownership in the UK economy.

Current figures show that companies owned by their employees are growing 50% faster than the UK economy – at a rate of 1.1% compared to 0.7% for the wider economy.

  • In 2009 there were about 200 UK businesses wholly or significantly owned by their employees, with a combined annual turnover of approx £25bn and 110,000 employees.
  • In 2011 there were about 250 UK businesses with an annual turnover of approx  £30bn and 130,000 employees.

A growing body of evidence points to the benefits delivered by employee ownership. Research has found that employee owned businesses are more stable over the business cycle and were more resilient in the last recession, compared to non-employee owned businesses. Other research finds that employee owned businesses enjoy greater staff commitment and motivation, and points towards wider benefits such as greater job satisfaction, employee retention and innovation, and reduced absenteeism.