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Home » Disadvantages of employee ownership | nibusinessinfo.co.uk
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Disadvantages of employee ownership | nibusinessinfo.co.uk

By uk-times.com16 July 2025No Comments1 Min Read
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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.

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