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05.03.06


Successful Entrepreneurs Need Employee Ownership

By Gerard Brandon

"Every individual...intends only his own gain....By pursuing his own interest he frequently promotes that of society more effectually than when he really intends to promote it."

- Adam Smith - Wealth of Nations - 1776

Over 330 years after Adam Smith made that statement we are still debating the issue of Employee Share Ownership. The high demand and high cost of skilled employees in the developed countries where unemployment is below 5% has reached a point where employees need more than a decent job to keep them from leaving.

You just can't keep staff in this environment...

I recently was in a discussion where a notable CEO of an Irish based pharmaceutical company said"Every time we get our hands on a good scientist, Wyeth or Abbot Labs offer them a better proposition.... You just can't hold on to employees in this environment"

Another Irish diagnostic company in a recent Business & Finance article reported that with an average of 325 Employees, they are losing 9 Employees per month at an estimated cost of €3m per year. Source - Brendan Farrell President - Business and Finance - Dec 2005

It's not about what you pay...

It's about what it costs you if they leave...


The biggest misconception that an employer has and mistake that they make is to believe that employees work for anybody but themselves...

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The idea that the greatest assets that a company has, walk out the door at the end of a business shift is wrong...seriously wrong.....

Employees are NOT company assets

They are scarce experts renting their time to employers. An asset implies ownership.

Doing your best in a competitive global market is just not good enough! It suggests a linear measurement. Steady as she goes means managing to mediocrity.

A focus on cost-cutting and efficiency has helped many organizations weather the downturn, but this approach will ultimately render them obsolete. Only the constant pursuit of innovation can ensure long-term success

Daniel Muzyka, Dean, Sauder School of Business, University British Columbia

Financial Times - September 2004

The best companies outsource to win, not to shrink.

Read the Full Article


About the Author:
Gerard Brandon is editor of Guru Manager Entrepreneur Toolkit. Founder and CEO 1996 - 2004 of Alltracel Pharmaceuticals Plc. IPO in 2001. Ernst & Young Entrepreneur of the Year finalist 2005.

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