Newable looks for further growth after becoming employee-owned
Newable, the provider of money, advice and workspace to SMEs, which has over 1,100 employees and supports over 43,000 SMEs every year, has become an employee-owned business – the Newable Partnership.
This is aligned with the business’s five-year plan to support upwards of 50,000 businesses every year and be within the top 1% of UK businesses for employers, ESG and customer satisfaction by 2028.
Previously operating as a Company Limited by Guarantee for over 40 years, in which the 32 London Boroughs and the City of London acted as ‘Members’, the new partnership model will allow Newable employees to benefit from the success of the business, by providing share options under an HMRC-approved Company Share Option Plan.
This change in structure directly rewards employees for their hard work and commitment while also giving them an active interest in the future of the company.
The London Boroughs retain a close relationship with Newable, having become preference shareholders with a long-term stake in the business.
Research by the Employee Ownership Association shows that employee owners have higher levels of job satisfaction and in 2022, the top 50 employee-owned businesses reported a 5.2% increase in productivity, double the national average of 2.6%. Research has also found employees who have equity in the companies they work for report 53% longer median job tenure due to job satisfaction. Employers say their profit margins are 8.5% higher and that they are three to four times more likely to retain staff.
Chris Manson, Newable CEO comments: “We have bold growth ambitions for the next five years, supporting more SMEs than ever before with a focus on ESG and customer and employee satisfaction.
“Employee ownership is a key part of Newable achieving this, meaning our people will be increasingly motivated and rewarded for collectively achieving our goals. We exist to make sustainable profits by helping other businesses to thrive, and now, as an employee-owned business, we will have the right tools to deliver this on an ever-increasing scale.”