Employee Participation in SME Companies: 3 Inspiring Examples and Benefits

Let’s start with what employee participation means. It means that employees take part financially in the company they work for. This can happen in various ways. Sometimes employees are given shares in the company. Or they may receive a portion of the profits. The goal is often to involve employees more in the company. Companies also want to attract and retain good employees with this. Employee participation can lead to employees working harder and being happier with their job. It can also help when the boss wants to retire and pass the company on to someone else.

Why do companies choose employee participation?

More and more SMEs are opting to let their employees share in the company's success. They do this for various reasons. First, they want to make their employees more involved in the company. When employees are co-owners, they often feel more responsible for the company’s success. Second, it helps attract and retain good employees. People appreciate being able to share in the profits of their work. Third, it can improve the atmosphere at work. Employees who are co-owners often collaborate better. Finally, it can assist with company succession. If employees already hold shares, it is easier to transfer the company to them when the boss wants to step down.

Example 1: Asito (Cleaning Company)

Asito is a large cleaning company in the Netherlands. They have chosen a special form of employee participation. At Asito, employees can become co-owners of the company. They do this by allowing employees the chance to purchase share certificates. This makes employees feel more involved in the company. They also share in the profits when things go well for Asito. This has resulted in employees working harder and being happier with their jobs. Customers are also more satisfied with Asito's work. This example shows that employee participation can work well in the cleaning industry.

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Example 2: Donker Groen (Landscaping Company)

Donker Groen is a landscaping company that also opts for employee participation. In this company, employees can become shareholders. They have the chance to buy a part of the company. This makes employees feel more ownership of the company. They think more about the future of Donker Groen. The result is that employees work harder and collaborate better. Good employees also tend to stay with the company longer. Donker Groen demonstrates that employee participation can work well in practical professions. It is not just for office work but also for people who work outdoors.

Example 3: Cosmo Hairstyling (Hair Salon Chain)

Cosmo Hairstyling is a chain of hair salons. They too have chosen employee participation. At Cosmo, hairdressers can become co-owners of the salon where they work. They do this by buying shares in the company. This makes hairdressers feel more responsible for the salon's success. They think more about how to assist customers better. This has led to happier customers. Employees are also happier with their jobs. Cosmo Hairstyling shows that employee participation can also work well in the service sector. It is not just for big companies but also for smaller businesses like hair salons.

Lessons from these examples

These examples show that employee participation can work in many different companies. Whether it’s cleaning, gardening, or hairdressing, employees can become co-owners everywhere. This often results in more engaged and motivated employees. It also leads to better results for the company. Important lessons include: Make clear agreements about how employees can participate. Ensure that employees understand what it means to be a co-owner. Give employees real influence, not just on paper. Celebrate the company’s successes together. It is important that everyone in the company supports the idea of employee participation.

Advantages of employee participation

Employee participation can have many benefits for SMEs. First, it results in more engaged employees. When people are co-owners, they feel more responsible for the company’s success. Second, it can lead to better business results. Employees who share in the profits are often more motivated to work hard. Third, it helps retain good employees. If people have shares in the company, they are less likely to leave. Fourth, it can improve the atmosphere at work. People feel more like a team when they are co-owners together. Finally, it can assist with company succession. If employees already hold shares, it is easier to pass the company on to them.

Conclusion

Employee participation can be a good choice for SME companies. It can lead to more engaged employees and better business results. The examples of Asito, Donker Groen, and Cosmo Hairstyling show that it can work in various sectors. Are you an SME entrepreneur? Then it is worth exploring whether employee participation also fits your company. It can be a great way to bind your employees and strengthen your company. Discuss it with your employees and see what works for your company. Employee participation is not the same for every company, but there is often a form that works well.

Also curious about employee participation in your company? We can help you set up an employee participation plan. Contact us and we will help you find the right form of participation for your company without obligation.