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.