This case examines the decision by private equity firm KKR to grant equity to every employee at portfolio company CHI Overhead Doors upon purchasing the company in 2015. The case explores whether this initiative will create shared value, growing profits through better incentive alignment while creating wealth for low-wage manufacturing workers. While CHI witnessed some … Read More
KKR’s sale of CHI, the garage door manufacturer, made headlines for being one of KKR’s highest returns since the 1980s and the life changing pay-out of CHI’s hourly employees and truck drivers. After a movement led by by Pete Stavros, Chairman of CHI and Co-Head of the Americas Private Equity platform at KKR, CHI management gave every … Read More
KKR’s sale of CHI, the garage door manufacturer, made headlines for being one of KKR’s highest returns since the 1980s and the life changing pay-out of CHI’s hourly employees and truck drivers. After a movement led by Pete Stavros, Chairman of CHI and Co-Head of the Americas Private Equity platform at KKR, CHI management gave every employee … Read More
How we structure ownership and work in healthcare matters. As a society, we underpay and under-support—under-care-for—the very workers we rely on to provide health and care services to others. The COVID-19 pandemic briefly spotlighted this fact as health workers braved risks to care for the vulnerable. The worst of that crisis has passed—but the extractive … Read More
This case study examines the only physical therapy practice in the country to be structured as a worker cooperative. Founded in 2010 by 12 coworkers who left their previous employer to start their own practice together, PT360 has grown to become the largest independent physical therapy practice in the state of Vermont. It now has … Read More
No other state has as many individual home care cooperatives in operation as Washington. Although small and limited to date to serving the private pay market, Washington’s home care cooperatives suggest that “another way is possible” for organizing home care provision in the state. The business model they are piloting breaks with dominant, extractive, models … Read More
This case study examines Five Point Holistic Health, the Chicago health center organized as a worker cooperative. The center offers acupuncture, psychotherapy, and bodywork treatments and services. From its earliest days, the worker-owners of Five Point have prioritized making its services affordable and accessible to the community. After years of hard work, they have achieved … Read More
The Evergreen Cooperative Laundry’s partnership with Cleveland Clinic is perhaps the best-known example of an “anchor institution” approach to economic development in the United States. The worker-owned business is the primary laundry vendor for the Cleveland Clinic’s entire northeast Ohio area. Their experience to date suggests that it is indeed possible for a health system … Read More
Currently, there is renewed interest in organizations providing greater economic benefits to its members given the widening divide among social classes. A major source of alternatives to capitalist organizations in the U.S. was the co-operative movement sponsored by the Knights of Labor during 1870–1889. This study examines cases of the Knights’ producer cooperatives to understand … Read More
Purpose This study investigates whether broad-based employee ownership (BBEO), in isolation and in conjunction with cash profit sharing (CPS), can enhance labor productivity in family firms over nonfamily firms. Design/methodology/approach Hypothesis testing was conducted using cross-sectional time-series regression with a matched sample of 393 family and nonfamily firms listed on the US S&P 500 over … Read More
Employee ownership has attracted growing attention for its potential to improve economic outcomes for companies, workers, and the economy in general, and help reduce inequality. Over 100 studies across many countries indicate that employee ownership is generally linked to better productivity, pay, job stability, and firm survival—though the effects are dispersed and causation is difficult … Read More
Employee ownership is a big, bold idea, a market tested concept that is capable of transforming the American economy and rebuilding the American dream. This white paper includes policy proposals for turning more workers into owners.
This is a survey course that explores the variety of ways that businesses can compensate employees with shares of equity, profits, or gains and the human resource management, employment relations, organizational and individual motivational issues that such practices raise. The class will use the Harvard Business School case study method where each class will be … Read More
City and state policymakers across ideological divides can help raise standards for workers and boost sustainable economic growth by supporting employee ownership and broad-based profit-sharing.
At the center of the ongoing debate about the causes and cures of inequality in America today is the vast difference in wealth between owners and workers. As many have noted, that gap was not nearly as large in the middle of the twentieth century as it has become in the first two decades of the 21st century, where owners and other executives make many multiples of what workers make – largely through grants of stock in lieu of salary.
The Journal of Participation and Employee Ownership (JPEO) seeks to publish original empirical and theoretical research in the broad area of employee participation and shared capitalism. In particular, the journal calls for rigorous analysis of: employee participation in decision making at the top and grassroots levels; high-performance, high-involvement work systems; cooperatives; employee ownership; profit sharing; team incentives; broad-based stock … Read More
Purpose A growing number of econometric examinations show that works councils substantially shape the personnel policy of firms in Germany. Firms with works councils make greater use of various human resource management (HRM) practices. This gives rise to the question of whether employers view the shaping of personnel policy positively or negatively. Against this background, … Read More
Purpose The purpose of this paper is to look at the effect of profit sharing (PS) on the ability of the firm to take care of the environment. Design/methodology/approach In a large cross-section of French firms, the authors find strong associations between PS and various innovations with environmental benefits. With cross-sectional data from the Community … Read More
Purpose This purpose of this paper to examine how profit sharing depends on the underlying profitability of firms. More precisely, motivated by theoretical research on fair wages and unionized labor markets, profit sharing is estimated for six different profitability categories: positive, increasing, positive and increasing, negative, decreasing and negative or decreasing. Design/methodology/approach The paper exploits … Read More
Purpose The purpose of this paper is to review the historical background for broad-based ownership in the USA, the development of forms of employee ownership and profit sharing in the USA, the research literature on employee ownership and profit sharing and related employee participation, the development of policy and options for new policies. Design/methodology/approach It … Read More
This report explores access to equity compensation and capital shares in the tech sector, which merits special attention for the following two reasons. First, the tech industry is heavily supported by the federal government. Second, outside industries often emulate the innovative culture and practices of the technology sector.
Purpose The purpose of this paper is to investigate the additive and differential effects of short-term-oriented group incentives (STOGIs) and long-term-oriented group incentives (LTOGIs) on psychological ownership and organizational commitment. Design/methodology/approach This study analyzed data from 17,255 US employees in the 2005 data set of the National Bureau of Economic Research Shared Capitalism Research. Findings … Read More
Purpose The purpose of this paper is to discuss diverse matters concerning the field of Participation and Employee Ownership (PEO) coinciding with the launch of the JPEO. Design/methodology/approach This paper used mixed methods including bibliometric analysis. Findings Significant gaps exist in our knowledge of the scope and nature of PEO. Citation counts illustrate both the changing … Read More
Purpose The purpose of this paper is to provide novel and rigorous evidence on the productivity effect of varying attributes of performance-related pay (PRP) and shows that the details of PRP indeed matter. Design/methodology/approach In doing so, the authors exploit the panel nature of the Finnish Linked Employer–Employee Data on the details of PRP. Findings … Read More
When Workers Become Owners Professors Joseph Blasi, Richard Freeman, and Douglas Kruse explain how sharing the ownership or profits of a company with workers can improve productivity, pay, and work life quality – all while reducing economic inequality. Bonus – Jump on the Bandwagon Professors Blasi, Freeman, and Kruse stay post-interview to discuss why trade unions, business schools, and … Read More