The need for an alternative approach to business has never been greater,” says Guy Singh-Watson. He is foraging along the banks of the River Erme at low tide, searching for marsh samphire – the crunchy, salty plant with vibrant green stalks – to go in some of the 50,000 veg boxes that will be dispatched tomorrow. Regularly joining half a dozen pickers to cut samphire during the few weeks it is in season, he is clearly happy to get his feet wet and muddy on the frontline.The alternative approach Singh-Watson has in mind may once have sounded radical, but it is growing in popularity among UK businesses. In June 2018, he sold three-quarters of the shares in Riverford, the Devon-based organic farm and veg box company that he founded in 1987, to its 741 employees for a quarter of their market value..But switching the business to an employee ownership (EO) model wasn’t done simply out of generosity. Singh-Watson considers it a shrewd business move too. “We need to encourage staff to have more control over their own jobs as well as the direction of the company,” he tells Positive News. “That feeds their motivation and wellbeing and, as a result, creates a more productive workforce with a greater sense of unity. Employee owners are more invested, and the business will be more profitable in the long-term.”Kirsty Hale, head of recipes, has worked at Riverford for 11 years and says the workforce is now more cohesive. “Day to day, my job hasn’t really changed, but there is more shared decision-making now and people are empowered to make positive change,” she notes. It is key, Hale suggests, to balance giving people autonomy with consolidating the processes and structures that are in place. “Making sure everyone feels connected, whether they’re in the barn packing veg boxes or in the office, is essential. It’s a work in progress but it’s quite enlightening to realise that it’s commercially beneficial.”.Because by many measures, the move has proved a success for Riverford. One year on, Singh-Watson has noticed a greater sense of pride among his fellow workers. The company reported its strongest financial growth in 30 years – thanks partly to favourable weather and bumper harvests – with a turnover of £65.9m for the year to April 2019, a 10 per cent increase in sales and 24 per cent rise in new customers. It is now on track to exceed a £70m turnover by 2020.Most crucially for Singh-Watson, staff turnover has reduced by 15 per cent since the transition. Could this be due to the staff council consulting on issues such as wellbeing and work culture, and the recent company-wide 3 per cent pay rise? “So far, it’s working fantastically well,” he says. “We are making better decisions, although maybe it takes slightly longer to make them.”.There is more shared decision-making now and people are empowered to make positive change.Employee ownership is nothing new, of course. The John Lewis Partnership has been owned by staff since 1929, and now has 83,900 partners. With gross sales of more than £11.7bn for the 12 months to January 2019, it’s the largest EO business in the UK according to the Employee Ownership Association. Riverford is the 30th largest by number of workers and joins the likes of food wholesaler Suma, which has its headquarters in West Yorkshire, Brighton-based Mooncup, the 15,000-strong international engineering company Arup, and a more recent convert, electronics retailer Richer Sounds.In November 2018, Bristol-based studio Aardman Animations followed suit in order to ‘secure its creative legacy’. “I believe that those creating the value should benefit, rather than external third parties,” says studio co-founder David Sproxton, who handed over a 75 per cent stake to 140 employees. “The EO model fits well with our collaborative, collegiate culture. It gives people a voice, and once people understand that they can make a difference, it revolutionises the way that business works.”.Read the Latest Agriculture News in Marathi & Watch Agriculture videos on Agrowon. Get the Latest Farming Updates on Market Intelligence, Market updates, Bazar Bhav, Animal Care, Weather Updates and Farmer Success Stories in Marathi.
