Employee Ownership as a Succession Option to Retain Sector Capacity

Care England and eoa have published recommendations as rising pressures have seen the sector predict nearly 3 in 10 providers will exit the market.

People Powered Care is a report that outlines the benefits of employee ownership as a business model that could retain capacity, reduce recruitment and retention issues, and improve care quality in the sector. A key case study in the report is our members at Shaw Healthcare, who are the largest employee owned health and care business in the UK. Employing over 3,300 staff, they have highlighted how the transition to employee ownership worked for them and saw them improve care quality and achieve business growth too.

This report comes weeks after Care England and Hft launched their annual Sector Pulse Check report, which found that 29% of providers shared that they were considering leaving the market for a third year running, noting that the most recent results show that the “the approach to health and social care is not working”. Most of these providers cited “workforce-related costs” as their largest financial pressure, as local authority fees have not increased in line with increases to the National Living Wage.

The full report is available to download below, but key recommendations ask providers who are considering exiting the market to look into the benefits Employee Ownership could bring. Local authorities and anchor institutions are also recommended to work to leverage employee ownership as a way to create long-term stability for the sector in their areas. It also contains a wealth of information on the process of transferring to an employee ownership model.

Click here to download the report

Professor Martin Green OBE, Chief Executive of Care England said:

“In our society, adult social care is the foundation of support for millions of individuals and their families, enabling them to live with dignity, independence, and choice. Despite its critical importance, the sector faces extraordinary challenges, from financial pressures to workforce shortages.

“Employee ownership stands out as a powerful, innovative model that can transform how care is delivered, creating a system that prioritises the wellbeing of those who give and receive care.”

The employee owned sector has grown rapidly in recent years, with a fifteenfold increase since 2014. Reflecting this significant growth, evidence suggests that EO is now one of the UK’s most popular succession options, making up 12% of all private company transactions and being the preferred exit strategy of 18% of business owners, with many citing the retention of business independence, and the wellbeing of employees as key factors in their decisions.

A webinar featuring Shaw and eoa, handing you advice on the process and benefits of employee ownership will be taking place on the 15th of April, which you can sign up to here.

For further information on the report, please contact Cai Parry (cparry@careengland.org.uk) or eoa’s Sam Blakeborough (sam.blakeborough@employeeownership.org.uk)