Company Founder Hands Control Over To Employees And Offers Large Cash Reward Talk about a company looking after its staff? The UK’s largest specialist hi-fi retailer, Richer Sounds, has just announced that it will be passing over majority control of the company to its 598 employees across the UK. It will be controlled by an employee-owned trust, drawing comparisons with the John Lewis partnership model.
Julian Richer, who set up the company 41 years ago, said the “time was right” to give his stake to staff as he stepped down from day-to-day running of the firm he started in 1978, aged 19. He said: “Having hit the ripe old age of 60 in March, I felt the time was right, rather than leaving it until I’m not around, to ensure that the transition goes smoothly and I can be part of it.”
The move will see him land £9.2 million for the stake, although £3.5 million will be handed straight back to staff as loyalty bonuses.
Each of its 522 employees will pick up £1,000 for every year worked at the firm, meaning an average payout of £8,000. But there are 39 long-serving staff who have clocked up more than 20 years at the group who will pick up hefty windfalls. Called the Richer Sounds Trust, the employee ownership plan will run according to a set of principles to make sure the firm “continues to operate in a responsible manner, and is based on honesty, commitment, trust and respect”, according to the group.
Showcasing employee appreciation can do wonders for a company’s morale and output. Whether it’s an office, a garage, a shop or a supermarket, employees are responsible for the day to day operations of your business and care and support your customers, all whilst delivering a service which represents your brand. So how are you showing them that they’re appreciated? Simply paying their wages isn’t enough nowadays. Unemployment rates are at an all time low, and the job market is thriving, with job offers and recruitment available to nearly everyone. According to a recent study, showing employees appreciation can result in a company’s higher retention rate and staff happiness, leading to increased productivity and a reduction in stress levels.
Employees feeling recognised or rewarded by their manager is one thing. But when employees feel like they’re making a real impact on the business with appreciation from a co-worker, client or even and executive can make them feel even more valued. Employees who see the results of their hard work and are reminded just how important their work is, will ultimately work harder.