Empower Employees Through a Culture of Ownership: A Guide for Leaders
Modern leadership practices have demonstrated that creating an ownership culture among employees can result in additional organizational benefits, ranging from increased engagement and productivity to accelerated growth. By encouraging employees to take ownership, leaders hope to develop a mindset so employees think of the "company's success" as synonymous with "their own success."
Let's look at some of the key ways in which you can foster an ownership culture in your organization.
Encourage responsibility and accountability
The first and foremost way to make employees feel like they're important and play a vital role in your organization's success is by encouraging them to take on responsibilities. Leaders should empower employees to make decisions and feel a sense of ownership for their own work. This includes providing them with the resources and support they need to succeed and holding them accountable for their results.
When imposing accountability in a rigid and unjust manner, it may have unintended negative consequences and create tension between employees and management. It is better for leaders to adopt a more comprehensive method that promotes accountability in a positive way. Research shows that when accountability systems are perceived as fair and just, employees are four times more likely, to be honest, act fairly, and serve the organization's overall purpose.
Create an environment of trust
Trust is key to creating a culture of ownership. When employers trust their employees to make important decisions, it motivates them to take ownership of their work. According to a Salesforce report, employees who feel their voice is heard are 4.6 times more likely to feel empowered to perform their best work. This is why leaders must strive to build a trusting environment by showing transparency and sincerity in their communication, allowing for dialogue and feedback, and offering autonomy and support.
The ownership culture also means that employers must be open to employees exploring different solutions and ideas and provide them with the resources required to conceptualize those ideas.
Introduce employee stock ownership plans (ESOPs)
There is no better way to encourage employees to take ownership of their work than by giving them monetary ownership of it. The General Social Survey (GSS) of employee ownership revealed that employee owners are six times less likely to be laid off when compared to non-owners.
Stock ownership gives employees more job security and motivation to work harder, knowing that they are stakeholders in their company and share in the profits and losses. ESOPs can help increase productivity while providing employer tax advantages, as contributions made into the ESOP are tax deductible.
Other benefits of cultivating a culture of ownership
I've shown that developing a strong ownership culture can lead to increased productivity, innovation, and employee retention rates. However, it also improves employee engagement metrics. Gallup research findings have shown that companies with higher employee engagement experience an 81 percent difference in absenteeism, and a 23 percent difference in profitability.
This makes ownership culture a powerful tool to empower employees and drive organizational success. Leading by example and helping employees see the bigger picture of how their work contributes, can motivate them to take ownership and associate the company's success with their own personal success.