The Rubicon Recruitment Group based in Dorset has announced that it is now officially 100% owned by its employees, with the launch of an Employee Ownership Trust model.
The company will now be known as the Rubicon People Partnership, to mark this significant change in the structure of the business. The founder of the Poole-based recruiter, Lloyd Banks, explained to Recruiter.co.uk why the organisation chose to go in this direction:
“Employee ownership is a natural progression for us,”
“Many of my colleagues have worked with me for a long time, and the continuing success of the business, especially during such turbulent times, is a result of an extraordinary team effort. Employee ownership rewards that effort whilst ensuring that future successes are reimbursed, and it safeguards the extraordinary culture that drives our business.”
How do Employee Ownership Trusts work?
Rubicon will now have an Employee Ownership Trust (EOT) in place. This is a way of formalising the input that its workforce already has in powering and steering the business. The Trust gives every one of its 30 employees an equal say at regular meetings. What’s more one member of the Trust will represent the EOT on the company’s Board of Directors.
A crucial part of the arrangement is that employees – now known as partners – will also get an equal share in Rubicon’s profits.
The move to an employee-owned structure for Rubicon clearly represents an impressive commitment to its dedicated, long-standing team.
Should all recruitment businesses consider employee ownership?
The number of businesses adopting employee ownership models in the UK is growing. The Employee Ownership Association (EOA) estimates that collectively these companies contribute more than £30 billion to GDP.
It’s a business model with many benefits, and which seems particularly appealing in the wake of the coronavirus pandemic – when companies have never relied more on their core staff. According to Rubicon’s founder Lloyd Banks, its new Employee Ownership Trust model will help the organisation be more resilient to future shocks like COVID-19. He also said:
“Employee ownership protects jobs, retains our culture, provides clients with even more confidence in service delivery commitments and will be a catalyst for growth.”
For recruiters with close partnerships with long-standing clients, this kind of business model is appealing. Employers wanting to partner with agencies with strong values in relation to corporate social responsibility and community involvement will naturally gravitate towards employee-owned recruiters.
And it can even help with recruitment itself. According to the EOA, employee-owned businesses have high employment standards and are better at recruiting and keeping committed and talented staff. Workers tend to be more entrepreneurial, innovative and interested in the success of the business, because they’re co-owners and have a say in how the business is run.
If you need to find talented new staff, or are looking for a new career opportunity, First 4 Recruitment can help. Get in touch with our friendly, specialist team on 01706 433744 or email firstname.lastname@example.org.