Why Granby are proud to be an Employee-Owned Business

Granby are proud to be an Employee-owned business. Over the past few months on LinkedIn we have shared some of the findings from the 2023 Employee Ownership Association (EOA) research study that looked at why employee-owned businesses keep on delivering; for their employees, stakeholders, communities, industries, the economy, and even the planet.

We thought now was a good time to pull these insights together and share some of the highlights.

Employee Ownership is the Future

As an Employee-Owned Trust, Granby are proud to be at the forefront of the employee ownership movement in the UK. A movement with, according to the EOA study, at least 1,650 employee and worker owned businesses (EOBs) in the UK as of October 2023.

Being part of this ownership model brings numerous benefits to the UK economy, including economic, social, and environmental advantages. It’s high time that policymakers and capital providers recognise the value we bring to the economy, both local and national.

What’s even more impressive is that employee and worker owned businesses (EOBs) are thriving across a range of sectors. From a 3PL business like ours to well-known brands like Go Ape, Aardman Animations, and Riverford Organics and on through to established names like the John Lewis Partnership, the success of employee ownership is evident.

The UK is leading the way in the growth of employee ownership, with countries including Canada, Australia, and Denmark looking to learn from our policies and practices. Granby is proud to be part of this movement, and we’re excited to see what the future holds for employee ownership in the UK and overseas.

Net Zero & Carbon Reduction

The EOA study shows that employee-owned businesses are not only doing more to help get the UK to Net Zero than non-employee-owned businesses but, regardless of size, they are more likely to have a Net Zero or carbon management strategy in place (54%) than are non-EOBs (30%).

At Granby, we understand how our activities might have an impact on the environment. We also appreciate that we have the power to use our experience, knowledge and partnerships to influence positive change and innovation in our sector, across our supply chain, and for our clients. For the past three years, our Net Zero working group has been researching, planning and driving carbon reduction in our business. In 2020, we committed to reduce output emissions by 40% by 2025; just three years in and we are more than halfway to that goal. The full story can be seen in our 2023 Carbon Reduction Report.

Charitable Donations

The EOA study shows that many employee-owned businesses not only put funds back into their local communities, but they are considerably more likely to make charitable donations than non-EOBs (86% vs 55%). The EOA report that employee-owned businesses give over £500m more per year than do non-EOBs.

Alongside contributing more to the economy and to supporting their employees, employee-owned businesses notably go further in supporting and promoting the resilience of their local communities. As an Employee-Owned Trust, Granby know that when employees have a stake in the business, they feel a stronger sense of ownership and pride, and this translates into a genuine desire to give back to the local community.

Volunteering Days

The EOA study shows that employee-owned businesses not only give time and skills to their local communities, but they are twice as likely to offer volunteering days than are non-EOBs (43% vs 15%). This is another example of how having a stake in the business helps employees to choose to give back to the local community.

Here at Granby, we encourage our employees to get as involved as they can in local community projects. Recently we shared how our team are engaged in the local Thai Boxing community here in Blackburn.

Better Informed Employees

The EOA study shows that employees in employee-owned businesses are more likely to have critical business information shared with them than are those in non-employee-owned businesses. This was the case across every category surveyed; this includes costs, decision making by the senior team, investments, performance, new business and sales.

Why? Well, since employees have a stake in their company’s success, they are more likely to be more inquisitive and motivated to understand how the business operates and what factors contribute to its success. This motivation can drive employees to seek out information and learn about different aspects of the business. This is particularly important for a business like Granby, where we encourage employees to learn about the different sides of the business from 3PL to promotional marketing, from handling and fulfilment to reverse logistics, from storage and distribution to receipt validation and customer service.

Open Culture

Additionally, there is typically a more open culture, one of transparency and open communication. Since employees are also owners, they have a vested interest in understanding the company’s performance and decision-making processes. This can lead to a greater willingness to share critical business information with employees, as it helps them make informed decisions and contribute to the company’s success.

And when employees know they have a stake in the business, they are more likely to take the initiative, be proactive, and seek out opportunities for growth and learning. This can create a more supportive learning environment where every employee is encouraged to explore different aspects of the business and develop new skills.

Overall, employee-owned businesses share a unique dynamic that promotes learning and information sharing among employees. The ownership structure and culture of transparency helps businesses like Granby create an environment where employees are motivated to learn about the business and, in turn, are more likely to be provided with critical business information.

Diversity & Inclusion

The EOA study shows that employee-owned businesses are more than twice as likely to have diversity and inclusion (D&I) policies in place covering recruitment, career progression, gender pay gaps, support networks, representation in senior roles and establishing a disabled and neurodivergent workplace.

Why? By their nature, employee-owned businesses often have a more inclusive and participatory decision-making process, where employees have a say in shaping company policies. This participatory approach encourages diverse perspectives and ensures that the needs and concerns of different groups are taken into account.

Granby’s experience is that employee-owned businesses tend to have a stronger sense of community and shared purpose to begin with. This can only help, as it has for us, foster a culture of inclusivity and support for all employees, regardless of their background or characteristics. This type of ownership structure also creates a sense of collective responsibility, which in turn can motivate employees to actively promote diversity and inclusion within the business.

So, what are the practical ways in which Granby look to deliver a more equal, diverse and supportive business?

Here are just 5 key initiatives:

1. We start by taking into account the need for more inclusive access and working conditions for all members of the community, accommodating in many cases, religious requirements and obligations. This is across the whole business including our handling and fulfilment, storage and distribution, warehouse management and packing solutions operations.
2. Through recruitment processes and the adoption of an equality policy, we recruit in a way that allows all sections of our community to apply for roles within the business.
3. We aim to remove barriers that may be present in work places through the use of flexible working times, understanding of religious requirements, and the creation of a working environment that allows access to all operational areas for everyone.
4. We adopt formal, structured interviews for promotion opportunities that allow all members of the workforce to be treated in the same way.
5. And our staff are regularly asked to fill in surveys to reflect their feelings about work, conditions and how they feel about their key relationships within the business.

Investment in Training

The EOA study shows that employee-owned businesses spend an average of £38,000 – or 12% – more on training per company compared with non-employee-owned businesses. In addition, 93% of employee-owned businesses invested in on-the-job learning and development training in the last 12 months and that compares with 85% of non-employee-owned businesses.

Is there an obvious conclusion to be drawn? We think there is. Ultimately, employee-owned businesses often invest more in on-the-job learning and development because they prioritise the growth and development of their employees. As owners of the company, employees have a vested interest in the success of the business and understand the importance of continuous improvement. By investing in on-the-job learning and development, employee-owned business can enhance the skills and knowledge of its workforce, leading to increased productivity, innovation, and overall success. And employee-owned businesses tend to have a longer-term perspective and understand that by investing in their employees’ growth and development they are also investing in the company’s sustainability and future success.

Here at Granby, this is at the heart of our training philosophy. Earlier in January, Lisa Widdowson, part of our contract packing solutions team, spent two weeks studying Time Study theory and practice, the learnings from which will impact our already highly efficient operations team. Lisa is also a part of our Rising Stars project https://www.granbymarketing.com/granby-news/why-time-matters-in-operations/ which looks to secure our business for the long term by investing in succession planning.

Happier Employees

The EOA study shows 83% of employees reported increased engagement and motivation since their companies adopted an employee ownership model. And 73% reported increased job satisfaction!

As an employee-owned business since 2022 here at Granby we have noticed this change amongst our own team. Why? The main reason is employees have a stake in our company’s success, and they feel a sense of ownership and pride in their work (but we’re fortunate, they always did!). In a broader context, this sense of ownership and pride can lead to increased motivation and job satisfaction.

Additionally, as we’ve seen in some of the highlights earlier in the piece, employee ownership often fosters a more collaborative and inclusive work environment, where employees have a say in decision-making processes. This in turn can create a sense of empowerment and engagement among the workforce. What’s more, many employee-owned businesses look to offer better benefits and profit-sharing opportunities, which in turn can contribute to employees’ overall happiness and financial well-being.

Why does any of this matter? Well, the average person will spend over 80,000 hours at work. Just think of working all that time without any positive social interaction. It would be hard not to say that our happiness would be impacted, and not for the better. Thankfully, employee-owned businesses are doing their bit to improve employee social interaction.

Investing in People

The EOA study shows that employee-owned businesses are not only more likely to be expanding their workforce than non-EOBs but are over 50% more likely to do so.

64% of EOBs reported increasing their headcount in the 5 years to 2023 which compare with just 41% of non-EOBs.

Why is this? As we’ve seen, it may well be because when employees have a real and personal stake in their company’s success, they are more motivated and invested in its growth. This can lead to increased productivity and innovation, which in turn can create the need for more employees to meet the growing demand. Success breeds success.

Employee-owned businesses will also tend to have a longer-term perspective on growth and sustainability. Since the employees are also the owners, they are more likely to prioritise long-term success over short-term gains. This can result in a more strategic approach to expansion, including hiring additional staff to support the company’s growth.

And we’ve seen this many times here at Granby,, employee-owned businesses will often have a strong sense of community and collaboration. This in turn fosters that more positive work environment where the whole team feel valued and empowered, leading to higher job satisfaction and, if evidence is needed, lower turnover rates. With a stable and committed workforce, these businesses are more likely to have the capacity and resources to expand their workforce when needed.

More Productive

The EOA study shows that employee-owned businesses are not only very productive but are 8%-12% more productive than non-EOBs.

And it is not just the EOA saying this. Thomas Dudley, co-founder and CEO of Certified Employee-Owned and Ethan Rouen, assistant professor at Harvard Business School, in their 2021 Harvard Business Review article, “The Big Benefits of Employee Ownership” said “The benefits of employee ownership are proven, decades of evidence back them up. Companies looking to convert to employee ownership can find examples across industries, firm sizes and ages, and ownership stakes. If more organisations adopted even limited employee ownership, the results could be profound.”

At Granby, it is our experience that when employees have a stake in the business, they are more motivated and engaged in their work. This sense of ownership and responsibility can lead to increased productivity and innovation. We also enjoy a more collaborative and inclusive work culture, which in itself fosters teamwork and creativity.

Health and Safety

As businesses continue to face increasing scrutiny for their (ESG) practices, a growing number of companies, as Granby did, are exploring alternative ownership models partly as a means of improving their sustainability and social responsibility. One such model that has been gaining attention in recent years is employee ownership.

Granby have been employee owned since 2022. The EOA study shows there is a significant difference in health and safety among UK EOBs. Just 0.1% of EOBs report workplace incidents against 0.9% of non-EOBs. Twice as many EOBs provide access to mental health resources than do non-EOB’s. EOBs are also more likely to offer flexibility and contracted hours, allow employees to work remotely and support career breaks or sabbaticals than non-EOB’s.

Even during the pandemic, research by Rutgers said that employee-Owned firms significantly outperformed other firms when it came to protecting worker health and safety.

Contributors to the Economy

Did you know that EOBs contribute disproportionately to the UK economy?

As an Employee-Owned Trust, Granby are proud to be at the forefront of one of the fastest growing sectors in the UK. We are already a presence in the dynamic promotional marketing, contract packing, warehousing and distribution sectors. In the past 12 months, the employee-owned business sector grew by over 30% with around 330 new employee-owned businesses joining us in the sector.

The EO study shows that between 2011-2023 the EO sector grew at an average annual rate of 16% (compared to 2.2% growth in all active companies in the UK over the same period). This rapid growth in employee ownership is helping to create more profitable businesses that are markedly defying the UK’s national productivity trend whilst recycling earnings into providing good jobs and innovating new products and services.

Sector Growth

Another reason Granby is proud to be an Employee-Owned Business is that we are at the forefront of one of the fastest growing sectors in the UK. In the past 12 months, the employee-owned business sector grew by over 30% with around 330 new employee-owned businesses joining us in the sector.

Between 2011-2023 the EO sector grew at an average annual rate of 16% (compared to 2.2% growth in all active companies in the UK over the same period). This rapid growth in employee ownership is helping to create more profitable businesses that are markedly defying the UK’s national productivity trend whilst recycling earnings into providing good jobs and innovating new products and services.

Pride in our Business

We hope you can see why Granby is proud to be an Employee-Owned Business and one that is leading the way in the employee ownership movement in the UK.

Through our commitment to sustainability, community support, diversity and inclusion, employee development, and productivity, we are not only contributing to the economy but also creating a positive work environment for our employees. Our focus on health and safety, training, and growth reflects our dedication to creating a successful and sustainable business model that benefits all stakeholders. We look forward to continuing our journey as an employee-owned business and making a positive impact in the UK and beyond.