Employee owned businesses still need a clear direction, says KPMG

Businesses still need a clear direction, says KPMG

KPMG's David Fairs argues that how they handle inter-generational demands will be key to success or failure.

Also on KPMG.com

4 July 2014 - Commenting on 'Employee Ownership Day' and news that start-up companies are behind a rise in the number of organisations adopting employee ownership business models, KPMG's David Fairs argues that how they handle inter-generational demands will be key to success or failure.

A partner in KPMG’s People Powered Performance practice, David says: “Creating a fair deal in the eyes of different generations of the workforce is no easy task, but one that organisations must grapple with in their formative years.

After all, it may make business sense to invest a chunk of the early profits in today’s projects to secure future market share and growth tomorrow, but the risk is that one generation could end up paying for the sins of the past. 

In other words, younger workers may not reap the rewards their endeavour deserves if a business is still paying the cost of initial mistakes and the best way to avoid this is to create a sense of ownership – one where reward is always linked to the ‘here and now’.

“Businesses also need to ensure that their staff are motivated and that they are comfortable in the knowledge that their long-term contribution is valued. It’s easy to mistake a sense of value with the size of the pay cheque, but if start ups truly want to engage staff and ensure they share a journey to success the onus is on leaders to share their visions, ensuring that the direction of travel is clear. Anything less and the risk is that employees lose faith in the business idea before it even gets off the ground.”




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Mike Petrook, KPMG Press Office

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KPMG Press Office: 020 7694 8773


Notes to Editors:

The research was conducted during the first two weeks of May 2014 and incorporates the views of 1,035 adults across the UK.


About KPMG

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with approximately 11,500 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2013. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 155,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.

This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.

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