Beyond Microsoft Millionaires and Rich Googlers: Workers as Owners

Harvard Business Online's Bill Taylor discusses an example of a worker-oned company which is one of the top small workplaces in the US.

Business has been good. The company has annual sales of $100 million, up substantially over the last few years, with major facilities in Connecticut and Rochester, New York, as well as 14 locations outside the United States. How has Reflexite held its own against giant rivals such as 3M, with deep pockets and a vast global reach? By encouraging employees at all levels to be personally invested in the success of the company—literally.

Reflexite, it turns out, is owned in large part by the people who work there—500 employees who attend Town Hall meetings to discuss strategic issues, get monthly updates on finances and operating results, and are steeped in the company’s strategy and practices. Over the years, based on the performance of their business unit or location, workers received shares in the Employee Stock Ownership Plan (ESOP) worth 6 to 18 percent of their salary— including 60 workers in a factory in the former East Germany, and, starting this year, 110 workers in China.

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Cecil Ursprung, the company’s long-time CEO, who now serves as a director, thinks deeply about the impact of a company whose people think like owners. “People are at their best when they’re in a constant state of mild dissatisfaction, when they’re always looking to make things a little better,” Mr. Ursprung said. “That’s what ownership does. It’s remarkable what gets unleashed when people share in the wealth they help create.”

Emphasis Mine

Here we have an example of how a worker controlled enterprise is superior to other forms. Ownership overcomes the alienation of labour.