August 2019
Background Note
HBS Case Collection

Note on Shared Ownership

By: Ethan Bernstein and Nick Rekenthaler

Format:Print
| Language:English
| Pages:16

Abstract

While several tactics can drive company performance by instilling a sense of shared ownership among employees, perhaps the most direct is to actually share ownership with employees. Many public and private companies across industries have done just that, and studies have found that sharing ownership with employees can benefit a number of workplace performance metrics. This note summarizes the historical context from which shared corporate ownership grew, presents the three key decisions that leaders need to make when offering shared ownership (how broadly to do so, with what accountability, and with what rights), details the strategies that companies can use to share ownership with employees (e.g., profit-sharing, Employee Stock Ownership Plans (ESOPs), etc.), illustrates different strategies particular companies have employed, and concludes with open questions for future leaders. The goal of the note is to educate future leaders and managers on the implications of shared ownership decisions on employee engagement, and ultimately, long-term company performance. The note also provides a basic how-to user’s guide to familiarize future managers with approaches to sharing ownership more broadly with employees.