You may have seen our recent announcement that Instinct has become an Employee Owned business. This was formalised in July when we created an Employee Ownership Trust (EOT) which will ensure that the business is run for the benefit of all Instinct employees. We explore exactly what this means and the reasons that we have decided to go down this route as a business.
What is it?
The UK government introduced the EOT scheme in 2014. It allowed businesses to become owned by employees by way of a trust. EOTs have a majority stake in the business and legally must benefit all employees on an equal basis. As a minimum a company must transfer 51% of its shares to a trust.
Instinct made the decision to transfer 100% of the shares to the trust.
The most notable company which operate as an EOT is the John Lewis Partnership. However, there are currently 1418 companies in the UK that are employee owned.
Instinct’s EOT was implemented to ensure that all employees are involved and motivated through collective ownership. Placing employees at the heart of Instinct is the perfect solution to continue our journey.
Furthermore the EOT offers a fantastic opportunity for ambitious leaders to build upon the success of the business and impact future growth.
It allows Instinct to have a “business as usual approach” with the added employee incentives and security through involvement.
What does it mean for Instinct?
The EOT structure reflects our collaborative environment and solidifies our commitment to a truly inclusive company culture.
Transitioning to employee ownership via an EOT provides the opportunity to plan for the succession of the business. The core values of the business remain unchanged and our employees who helped build them will be the ultimate beneficiaries.
Ultimately, our clients, candidates and contractors benefit from working with a team that is fully motivated and empowered.
We are only just getting started however the initial signs are really positive. We are convinced this was the right route for Instinct and all of our employees.