Here are some of the most common questions we get asked. If you have any questions and they are not answered here, please do not hesitate to ask us. You will not only get a response, but you will help make it easier for everyone in the future. Ask here.
What difference will accounting for my people as assets make to my employees?
It will give credence to the statement “Our people are our greatest asset.” While you may think that may make little difference, it radically changes the way you manage them and so lays the foundation for a new mindset that changes the manager/employee dynamic and will make them feel more appreciated. It should also contribute to:
- A greater sense of role ownership and more pride in what they do
- A greater sense of commitment to the organisation and more interest in its performance
- A more persevering attitude when things are not right
- A greater sense of job security through recognition of their contribution
How does the Zealise employee ownership model differ from other models?
The Zealise model creates a totally new model of employee ownership that it offers the following distinct, unique features:-
- There is no cost to your people for acquiring their stake
- There is no cost to you for giving your people their stake
- There is no share ownership involved so there is none of the administrative burden associated with ownership and the transfer of ownership
- It is universal i.e. it enables every employee to have an ownership stake
- It removes the distinction between ownership in a listed company and ownership in an unlisted one.
- It offers a viable alternative to the issues that surround share options
Do I have to include the employee ownership element when I adopt the Zealise approach?
No. Employee ownership is an optional element of the Zealise solution. With employee ownership being a proven model for superior organisational performance and success, we believe it is the optimum solution for any organisation looking to make the most of its people. However, whether you decide to include this feature or not is entirely your choice.
Will my shareholders lose out if I adopt the Zealise employee ownership model?
The Zealise employee ownership model does not affect existing ownership in any way. It therefore does not dilute ownership in any way. Of course employee ownership could be said to potentially dilute investor earnings, but this potential is in fact offset in two ways.
- The increased returns from the transformed performance and superior results delivered by engaged employees acting and thinking like owners.
- The elimination of current schemes of incentive remuneration or performance related pay.
Will this employee ownership model only work in business and/or only in ‘for-profit’ organisations?
Clearly, the risk and reward of the Zealise employee ownership model appears to have a wider attraction for such businesses, but there is absolutely no reason why it could not be used equally effectively in any type of organisation. After all, people are common to all types of organisations and they will all be more effective if their people are more effective.
What impact does the Zealise approach have on employee mobility?
The beauty of the Zealise model is that it has no direct impact on the employment contract or the manner in which people come and go. Valuation as a human asset and employee ownership are simply the automatic consequences of working for the organisation. Similarly that value and ownership will automatically cease when the person leaves the organisation. Thus the concept can be introduced without in any way changing the existing administrative processes. The approach however, does create a new paradigm for people management and every organisation is free to choose and develop its own rules for employment termination.
Does the Zealise model affect the way in which non-performance is managed?
The Zealise model is designed to strengthen the relationship between organisation and employee, and thus inevitably ought to change both the extent of non-performance and the manner in which it is managed. However, that does not mean that – as an employer – you will forego the right to discipline your people for not meeting agreed performance standards. In extreme situations (as implied in the preceding paragraph) you will still have the right to ‘fire’. The aim, however, is to put the onus back on your people to take greater responsibility for their own actions, and by valuing them and making them co-owners, you will inevitably engender greater employee involvement and employee commitment and thereby reduce the likelihood of having to resort to disciplinary procedures.
Will employee ownership undermine my ability to reduce headcount during tough times?
It bears repeating that the Zealise model in no way changes the economic imperatives that drive the way you manage your organisation. What it will change, however, is the likelihood that you will need to, and – in the event that it may be unavoidable – it will ensure:-
- The numbers reduced will be considerebaly fewer than they might otherwise have been
- Your people – as co-owners – will have a better understanding of the business operations to understand the rationale and will be more inclined to help you manage the process and/or to find alternatives to redundancy.
- You will have a clearer idea than ever before of the precise value of the assets you are foregoing.