Riverford Organic Farmers is switching to employee-ownership, meaning employees are more involved in the business.
Riverford Organic Farmers has made the ambitious switch to employee-ownership (EO), with a huge 74% of the organic produce delivery franchise now being owned by its employees. The company delivers around 47,000 boxes every single week to homes across the country, from its franchisees who run their own regional organic farms.
The news was marked by a party, which saw staff and founder Guy Singh-Watson celebrating the new chapter together.
Through the new ownership scheme, all staff from franchisees to land workers will receive a share of at least 10% of the profits tax-free. Where the scheme differs from buying shares in the company is that through EO, staff won’t risk losing money if the company does. It’s hoped the move will make all staff feel valued and part of something important, encouraging renewed commitment to their roles.
Singh-Watson will still own 26% of the business, as he’s keen to stay involved with the franchise for as long as he can. He reassured customers that the change wouldn’t affect the price or contents of produce boxes and writing on his blog about the change he said “I am convinced most people are kinder, less greedy, more creative, more thoughtful and can contribute more and be more productive than our institutions allow them to demonstrate. The best indication of business efficiency (and most valid prediction of future success) is getting the best out of people while giving the most back; return on capital is a poor, short-term proxy. I want to be part of an organisation that helps us be the best version of ourselves – that facilitates and grows people.”
Since it was founded in 1987, Riverford Organic Farmers has grown into one of the UK’s largest produce franchises. Thanks to its strong code of ethics and high level of independence offered to franchisees, it’s a business with heart as well as the potential for impressive earnings.
Sophie Cole, Point Franchise ©
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