The idea behind Employee Participation is not equal in every situation. Often Employee Participation is linked to either financial participation (profit sharing or even ownership) or legal participation (a “say” in the decisionmaking process) or both. Our view on Employee Participation is that employees co-own the company they work for and maybe even also have legal rights to it (meeting and/or voting rights). Employees will participate in the company of their “boss”. This is an excellent way to reward employees for their hard work and involvement in the company. Research has shown that the more an employee can participate, starting financial and evolving to legal, the greater the commitment and communal strength of the team. You really create heroes when everyone co-owns the business.
Business Valuation is something you will encounter at some point in your company’s development, probably sooner than you think. For employees, the value of their participation in the company may be more relevant. It is easy to get caught up in all the jargon, but really it is rather simple and I’ll try to explain here how it works and how it can be done.Read more
What is a holding company? Here at Share Council it’s a common question that deserves more explanation. We often come across this item when setting up employee participation structures. A holding is not obligatory for employee participation, but it may come in handy. Briefly put, a holding entails that one BV holds shares in one […]Read more