Good Employment Charter – Wavehill case study

What is an employee-owned business?

In recent years there has been an increase in the number of businesses adopting employee ownership models. There are many reasons a business might consider this route, from succession planning to greater employee engagement. Yet employee ownership is not a ‘one-size-fits-all’. Factors such as the culture of the business, the sector it is in, and the goods and services it provides can influence how a business might undertake employee ownership.  

Wavehill and Employee Ownership (EO)

As a consultancy business, Wavehill provides social and economic research, analysis, and evaluation services across the UK and Europe. Its values and ethos ensure that the work it undertakes for its clients and the way it operates as a business is inclusive and evidence-based. In 2020, Wavehill transitioned its operations to an employee-ownership model. Initially, the driver for change focused on succession planning, coupled with a desire to further embed an open and transparent culture, where staff insights were considered.   

How Wavehill’s EO model works

Under Wavehill’s EO model, staff now own a majority share of the business which is held by a trust managed by three trustees: a member of the director's board, an independent trustee, and a staff representative who is voted in by staff. This model allows staff to get their views represented at a strategic level and provides an information feedback loop across the company. There are also several mechanisms in place for staff to raise ideas as well as vote on key issues. This provides staff with a voice in shaping initiatives that affect the business and their working environment.  

Initiatives brought forward are reviewed and staff are given the opportunity to consider the potential impacts on the business, including the financial pros and cons. To enable a transparent and inclusive process, Wavehill’s leadership ensures that staff have access to as much appropriate information and its impact on the business. This is coupled with staff insights, grounded in day-to-day operations, that help ensure that initiatives are both meaningful and feasible. In turn, it has cultivated a culture of transparency and trust, where staff feel valued and able to shape their workplace.  

Open communication ensures that staff understand the rationale behind decisions and promotes greater buy-in whilst enabling well-informed decision-making. This inclusivity and transparency not only strengthens morale but also fosters a collaborative environment where diverse perspectives are actively integrated into strategic decisions. 

Employee ownership in practice

The first test of Wavehill’s EO model, initiated by staff in the wake of the Covid-19 pandemic, was the introduction of the 9-day fortnight which allows full-time staff a day off every fortnight. This was implemented after extensive staff consultation. Surveys and workshops gathered employee input on flexible working options, followed by a 6-month trial to assess the impact this had on the business in order to ensure well-being and productivity were appropriately balanced. Once the trial had come to an end, the results were then presented to the staff, who unanimously voted to adopt the arrangement. The company also has other flexible working arrangements for all staff.  

Since then, Wavehill has continued to draw on the experiences and expertise of its staff to help inform other areas of the business. This includes the initial development of our latest three-year strategic plan with a cross-section of staff, with further input from wider staff during company Away Days. Wider staff input has also been used to refine our recruitment processes and develop accessible templates for Wavehill’s reports, presentations, and other outputs.  

Wavehill also incorporates democratic principles into its community initiatives such as the 1% pledge, an annual commitment to give 1% of pre-tax profit to good causes. Each year, staff are invited to nominate and then vote for beneficiary organisations to support and are actively involved in reviewing the structure and criteria of the pledge. This collaborative approach ensures that the company’s social impact aligns with staff values.  

Independent Verification: Good Employment Charter

Wavehill values independent verification of its democratic and inclusive approach through accreditations such as the Good Employment Charter. These accreditations provide external recognition of Wavehill’s commitment to progressive employment practices, ensuring transparency and ethical standards in governance. Moreover, they encourage a continuous refinement of policies to align with industry benchmarks and best practices. Other Wavehill accreditations include The Mayor’s Good Work Standard and Advanced Good Work Pledge. Importantly, all these accreditations are underpinned by staff involvement. This is essential for all accreditations that Wavehill signs up for; it ensures the ethos of these standards is understood by all, and embedded within Wavehill’s culture. 

Conclusion

Wavehill’s democratic approach to decision-making, complemented by external validation through accreditations like the Good Employment Charter, illustrates its commitment to fostering a progressive and participatory workplace. It ensures that its operations align with best practices and ethical standards.  

This aligns with the mechanisms of Wavehill’s EO model, as it continues to develop and evolve. The EO model has created a greater culture of transparency and increased levels of trust in decision-making processes. By empowering employees to shape the initiatives that affect them, Wavehill has not only continued to enhance employee satisfaction but also support business outcomes.