EO Day is celebrated on the 24th June, and this coincides nicely with the 5 year anniversary of DBS Digital becoming an EOT (Employee Owned Trust)- the first 100% employee-owned business in Lincolnshire! According to the Employee Ownership Association (EOA), EO Day is where "thousands of employee owners and EO businesses and supporters of Employee Ownership come together to raise awareness of the benefits of employee ownership"
What is an EOT?
Being an Employee Owned Trust (EOT) allows a company to be owned by it's employees, and is often created as part of a success planning strategy. They allow the owners to sell their shares free of capital gains tax whilst letting the employees of an EOT tax free bonus up to a certain threshold. An EOT is then run by its trustees and their role is to ensure the company is managed in a way that maximises employee engagement and commitment.
Studies show that employee ownership delivers benefits for employees and businesses alike, suggesting the EO businesses can be more productive and more resilient.
According to the EOA's press release for EO Day 2022, there were fewer than 500 employee owned businesses (EOBs) in 2020, but that has now doubled in the past three years.
Why did DBS Digital decide to become an EOT?
DBS founder David chose to transfer the business into an EOT as he didn't want to risk team members losing their jobs if he sold the company. Whilst it was also a tax efficient way for him to sell the business, it has also passed on the business to the very team that helped him build it and has given them a massive opportunity to take over running the business without having to raise finance to buy the business.
What it means to be an EOT
For us, being an employee owned company is all about creating a business that gives back to the employees. Our vision is for DBS to be an employer of choice, that is providing opportunities and tools for each team member to be the very best version of themselves, to achieve their dreams both in business and in their personal life. It is also giving team members fantastic perks, competitive salaries and bonuses when the company does well. By building a team that care, trust and inspire each other, we are also building a better client customer service experience, better performing campaigns and a business that clients enjoy working with. All together it's an absolute win win!
Being an EOT is about putting employees at the centre of our company and this is something that is truly important to DBS. Not only are we employee owned, we have recently been awarded Investors in People Gold Standard and won a prestigious International award for Best Company Culture. All of these wouldn't have been achieved if we didn't care about what we do and work together as a strong team to provide the best services we can for our clients.
All of us at DBS are proud to be an EOT and look forward to watching the business continue to grow and thrive as a team.
If you are interested to learn more about what being an EOT involves, then visit www.employeeownership.co.uk where you will find loads of resources and guidance from other EO companies.