Inštitut za ekonomsko demokracijo

Employee-owned firms are better in surviving crisis

EO and crisis

Employee-owned companies are better in withstanding the crisis. New research by Rutgers School of Management Relations that looked at companies and their response to the COVID-19 crisis confirmed this hypothesis yet again.

The results are not significant in their margins; EO firms significantly outperform non-EO competitors in how they secure jobs, maintain working hours, take home incomes, and guarantee job health and safety.

Some of the key findings are:

  • EO firms are 3-4 times more likely to retain both non-manager and manager employees;
  • even when non-EO firms received subsidies through Paycheck Protection Program and EO firms did not, EO firms were 3,2 times more likely to retain employees
  • EO firms are much less likely to reduce take home income of the workers
  • EO firms were making sure that people could work from home to much greater extent than non-EO firms
  • EO firms were more responsible in providing personal protective equipment (gloves, masks etc.).


Read the full study here.




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