Employee ownership and profit‑sharing transform workplaces by aligning incentives, boosting engagement, and driving performance despite implementation challenges.
Authors
Deepak Kumar Sahoo, Biju Patnaik University of Technology, Rourkela, India
Saroj Kanta Biswal, Siksha O Anusandhan, India
Anish Kumar, O.P. Jindal Global University, Sonipat, Haryana, India
Thi Trang Dang, Vietnam National University, Hanoi, Viet Nam
Ajay Chandel, Lovely Professional University, India
Summary
This chapter explores how employee ownership and profit-sharing arrangements blur the traditional boundaries between employment and entrepreneurship. It examines the historical evolution and various models of employee ownership, including stock options, ESOPs, and profit-sharing plans. By analyzing the entrepreneurial mindset fostered through these models, the chapter highlights their impact on organizational culture, employee engagement, and business performance. The discussion also covers the benefits, challenges, and limitations of implementing such models, supported by case studies from notable companies like John Lewis Partnership and Mondragon Corporation. Looking ahead, the chapter identifies key trends and implications for the future, including technological advancements, inclusivity, and regulatory developments. The findings underscore the potential of these models to transform work environments, enhance employee motivation, and drive organizational success.
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