In some countries like the UK, company ownership has begun to trend towards employee-ownership (also called ESOPs). This allows essential employees to become shareholders in a given company. Despite the advantages this can afford founders, there are also some disadvantages that can entail with this approach to running a company.
Yes, there are advantages to making a company 100% employee-owned
Making companies employee-owned can lead to several distinct advantages, all of which propels the company forward.
ESOPs perform better than non-ESOP companies
ESOPs can perform better than companies that aren't ESOPs because they have an enhanced sense of trust in one another, propelling the company forward. Other factors that are enhanced by ESOPs include decision-making, worker well-being, and company participation.