Employee ownership, while offering potential benefits, also presents some potential disadvantages
- There can be complex legal and financial aspects to setting up employee ownership, requiring professional advice and additional costs.
- There is potential for conflict and disputes due to differences in opinions and priorities amongst employee-owners.
- There could be a risk of underperformance if employees lack certain business experience.
- Introducing a new employee ownership model could disrupt company culture and create challenges in making decisions.
- Employee ownership can potentially offer tax benefits, but potential regulatory changes could cause tax implications.
- Employees’ financial security is tied to the success of the company, which could potentially lead to financial insecurity if the company faces challenges.
Read more on the advantages of employee ownership.
