Is Employee Ownership the Key to Tackling the Great Resignation?
The phenomena that was once classified as the "Great Resignation" is now giving way to a new trend - often referred to as the “Big Stay.” The Great Resignation, which peaked in 2021, was marked by employees leaving their jobs in droves, driven by COVID-19 pandemic and factors like burnout, and poor work-life balance.
However, as businesses and workers adapt to new realities, a shift has begun, with many employees deciding to stay in their roles for the right reasons. Could employee ownership hold the key to retaining staff in this new era of work?
Some argue that the great resignation has been replaced by the ‘Big Stay’ with employees looking for stability and safety and employee-owned companies are becoming more advantageous because of this.
The Great Resignation and the Big Stay
The term “Great Resignation” originally described the surge of workers quitting their jobs in search of better working conditions, pay and fulfillment. This mass departure of employees highlighted a crucial shift in worker priorities. Many employees found that they valued flexibility and a sense of purpose more than ever before and were not prepared to go back to the ‘norm;
For some industries, particularly in sectors like retail, hospitality and healthcare, the talent pool became increasingly difficult to fill, and businesses were scrambling to keep pace with employee demands.
However, as we moved further into 2023 and beyond, a new trend has emerged - the “Big Stay”. The Big Stay is characterised by employees reconsidering their career moves, opting to stay at their current jobs or return to former employers. This shift can be attributed to several factors, including a growing recognition of the value of job stability, the allure of hybrid or remote work opportunities, and the desire for long-term career growth with companies that are adapting to new employee needs.
The question businesses are now facing is how to attract and retain talent in an era where the motivations behind career decisions are no longer solely about pay and benefits. Instead, employees are looking for meaning, a sense of ownership, a voice and a way to directly influence the success of their workplace.
1. A Solution to Employee Retention
Employee ownership offers a compelling answer to the question of how to keep employees engaged, motivated and invested in their work. By providing workers with a stake in the company’s success, employee ownership can play a critical role in both addressing the fallout from the Great Resignation and helping to cement the Big Stay.
Employee ownership refers to a structure where employees own shares or stakes in the company they work for, typically through models such as Employee Ownership Trusts (EOTs) or Employee Stock Ownership Plans (ESOPs). It’s a model that aligns the interests of the workforce with the performance of the company. When employees become shareholders, they are motivated not only by their salary but also by the potential financial rewards that come with the company’s success.
Studies show that employees in employee-owned businesses report significantly higher job satisfaction compared to those in traditional employment models. This increased satisfaction can be a powerful retention tool, making employees more likely to stay with a company long-term, which is especially relevant in a post-Great Resignation world.
2. Stronger Employee Engagement
A crucial element of the Great Resignation was employee disengagement - workers who felt disconnected from the goals of their employers and weren’t motivated to contribute to their success. Disengaged employees are more likely to leave, especially when they don’t feel that their efforts are recognised or rewarded.
Employee ownership combats this disengagement by helping to make employees part of the decision-making process and aligning their personal success with the company’s performance. This translates into greater productivity, loyalty and overall job satisfaction. Employees feel that their voices matter and their contributions make a tangible difference to the company’s bottom line.
3. Workplace Stability and Financial Security
The Big Stay is characterised by employees weighing job security more heavily and for good reason. Employee ownership offers a unique form of job security. Employees with a stake in the business have a vested interest in its long-term success and the financial benefits they gain from that success serve as an incentive to remain with the company. In many employee-owned companies, employees also receive profit-sharing bonuses or dividends based on company performance, further enhancing their sense of financial security and stability.
Unlike traditional stockholders who may not be as personally connected to the day-to-day operations of the company, employee-owners are directly involved in the company’s success.
4. Attracting and Retaining Top Talent
The Big Stay might suggest that employees are more likely to stay in their current roles for the right reasons, but businesses still need to make themselves attractive to new candidates. Offering a stake in the business can differentiate companies from their competitors and help attract the best talent. For younger workers, who prioritise company culture, purpose and long-term financial rewards, the opportunity to become an owner can be a compelling reason to join a company.
For employees who are considering a job switch, the prospect of owning a part of the company they work for can be an attractive incentive to stay. Rather than simply offering higher wages or better benefits, employee ownership ensures that workers have a lasting stake in the company’s success and long-term growth.
Find out some of the largest UK companies that are employee owned.
5. Collaborative, Inclusive Culture
The Great Resignation has been fuelled in part by frustrations over a lack of inclusion and an impersonal workplace culture. Many employees want to work in an environment where they feel heard, respected and valued.
This culture of inclusivity is particularly valuable in the Big Stay era. Employee-owned businesses tend to have a more transparent and communicative environment and employees are encouraged to work together toward common goals. This collaborative approach can contribute to a more positive and fulfilling work experience, which can ultimately drive retention.
6. Succession Planning and Long-Term Stability
For businesses in transition or those facing succession challenges, employee ownership can provide a long-term solution. Rather than selling to an outside investor or facing the uncertainty of management turnover, businesses can transition to employee ownership, ensuring stability and continuity.
This can be particularly important in industries where the workforce is aging or where family-owned businesses need a succession plan. Employee ownership offers a way to ensure that the company remains within a trusted group of employees who are committed to its success.
Employee Ownership in Action
Several well-known companies have successfully implemented employee ownership models, and they provide valuable insights into how employee ownership can benefit both employees and the company as a whole.
Arup Group, a global leader in engineering and design, operates under an employee ownership model. The company has built a culture of shared responsibility, collaboration, and long-term growth. Employees have a stake in the firm’s performance, which has led to high engagement, retention, and job satisfaction. Arup’s employee ownership model has helped the company navigate periods of economic uncertainty, making it one of the most successful firms in its industry.
Similarly, John Lewis Partnership has been employee-owned for decades and its workers, known as partners, share in the company’s profits. This ownership model has helped John Lewis maintain a loyal, motivated workforce, which has contributed to its success in the competitive retail market.
The information provided herein was produced by Valloop with the greatest of care and to the best of its knowledge and belief. The information and views expressed herein are those of Valloop at the time of writing and are subject to change at any time without notice. They are derived from sources believed to be reliable. UKGroup-2025-31