Creating a Supportive Environment and Cost of Building an Employee Ownership Culture/Temporary Closing of Determination Letter Program

Employee Ownership


David Beck: Try giving employees ownership in company discusses some of the benefits of employee ownership and provides some advice that can help you build and maintain a strong employee ownership culture.


“Now most people would agree money does play a major part in why we work. According to the authors of "Equity: Why Employee Ownership is Good for Business," compelling research in the book confirms that combining employee ownership and involvement creates a foundation for effective management, enhancing a company's overall performance beyond what otherwise would be possible.”


Creating a Supportive Environment


The article also discusses ways to create a more supportive work environment:

• "Allow mistakes. When you criticize an employee for making a wrong choice, he often stops making any choices. View mistakes as learning opportunities, not failures."



• "Share information and your vision. The more employees understand about your company's goals and operations, the more they will appreciate the importance of their work, and the more likely they will be to take responsibility."



• "Loosen control. Giving others room to do things their way runs counter to the entrepreneurial mindset. Yet if you want to succeed and are meeting company goals, give employees room to find their own way, even if their route differs slightly from yours."

Cost of Building an Employee Ownership Culture

The article closes by stressing the time and resource commitment to building and maintaining an employee ownership culture:

“Creating a culture of employee ownership requires a serious commitment of time and energy. Asking your employees to think and act like owners means you agree to invest in each other. While the trade-off may seem costly on the surface, the payoff is a work force that performs to its greatest potential and a company that consistently transcends the competition."

Temporary Closing of Determination Letter Program

The IRS released the following announcement:

“Announcement 2007-90 - Temporary Closing of the Determination Letter Program for Adopters of Pre-Approved Defined Contribution Plans provides that the Service will temporarily cease accepting determination letters for pre-approved defined contribution plans that will have to be restated in the entirety for the Economic Growth and Tax Relief Reconciliation Act of 2001. It will be in IRB: 2007-42, dated October 15, 2007.”