Employee ownership is on the rise in the UK. With over 1,800 employee-owned businesses now operating across sectors as diverse as manufacturing, healthcare and professional services, the model is gaining traction, not just for its financial benefits, but for the cultural and social shifts it brings to the workplace.

Yet, for many employees, the transition to an employee-owned business model can come with uncertainty, questions and even scepticism. As a business leader or HR professional guiding your organisation through this change, it’s crucial to understand what your people are thinking and how to address their concerns with clarity, empathy and strategy.

Here are five common thoughts employees may have when a company announces a shift to employee ownership, and how you can respond to them effectively.

1. “Will anything actually change?”

For some employees, the news of employee ownership might be met with quiet indifference. There may be a perception that this is a structural or financial decision that won’t impact the day-to-day reality of their roles.

What this tells us: Employees need more than a formal announcement. They need a compelling vision.

How to respond: Communicate the why behind the transition, not just the how. Highlight how employee ownership can influence workplace culture, increase transparency and give staff a genuine voice in decision-making. Share examples from other companies where employee ownership has led to increased innovation, engagement and productivity.

2. “Is this just a way to avoid external buyers?”

If your business is going through succession planning or if the founders are nearing retirement, some employees may wonder whether employee ownership is a “last resort” to avoid being sold to a competitor or private equity firm.

What this tells us: Your team may not understand the strategic value of the employee ownership model.

How to respond: Reframe the narrative. Emphasise that employee ownership is a proactive and intentional strategy – one that protects jobs, retains independence and preserves the company’s culture and values. Transparency about the succession journey can help employees feel included rather than suspicious.

3. “Will I actually have a say, or just more responsibility?”

The idea of shared ownership often raises questions about governance and participation. Will employees really have influence? Or will they simply be expected to care more without seeing any real change?

What this tells us: Employees need to understand the structures behind employee ownership, and how their role will evolve.

How to respond: Provide clear information about how governance will work, including structures such as employee councils, trust boards and how employee voices are represented. It’s also worth highlighting that ownership doesn’t mean every employee is expected to take on more work, it means decisions are made with employee interests at heart.

4. “What’s in it for me?”

Let’s be honest, some employees may be quietly wondering about the financial implications. Will they get a share of profits? Will salaries or bonuses be affected? How does this compare to working for a traditional employer?

What this tells us: There’s a need for transparent communication about financial outcomes and rewards.

How to respond: Be open about the financial model, such as how the Employee Ownership Trust (EOT) operates, how profits are distributed and what tax advantages (such as income tax-free bonuses of up to £3,600 per year) exist. Clarity breeds confidence and people want to know what their stake means in practical terms.

5. “This could be really good…if it’s done right.”

Perhaps the most encouraging reaction is cautious optimism. Employees may see the potential for greater autonomy, shared success and a more inclusive culture, but they’re aware that poor communication or lack of follow-through could derail it.

What this tells us: The success of employee ownership depends on execution, not just structure.

How to respond: Build trust by demonstrating your commitment to ongoing employee involvement, co-creation and open dialogue. Offer training to help employees understand the model and set realistic expectations about the journey ahead. Employee ownership isn’t a quick fix, it’s a long-term cultural shift.

Creating a People-Centred Transition

As with any major organisational change, your employees’ perspectives matter. The move to employee ownership should be communicated as a partnership, not a top-down mandate. HR leaders play a critical role here, ensuring employees are engaged, informed and supported through the transition.

When handled well, employee ownership can be transformative. It’s associated with higher employee retention, improved business performance and a deeper sense of purpose among teams. But that transformation doesn’t happen by accident, it starts with listening to your people and responding with clarity, empathy and authenticity.

Where to Go From Here

If your business is considering the move to employee ownership, or you’re already in the early stages, it’s essential to get expert advice tailored to your structure, goals and team culture.

Employee Ownership Advisor offers clear, jargon-free guidance for businesses of all sizes looking to make the transition in a way that’s sustainable and people-first. Whether you’re an HR leader seeking support or a founder exploring succession planning, their free resources and expert advice can help you navigate the path forward with confidence.