Gusto Group issues growth shares to all employees
East Midlands family-owned business Gusto Group has issued Enterprise Management Incentives (EMI) otherwise known as ‘growth shares’ to its 150 employees as part of its transition to an Employee Ownership Trust (EOT).
The shares were issued during the week leading up to Gusto Fest – the company’s annual community celebration of its employees, which took place on Saturday 21st June – and are aimed at building a legacy for those who will be creating the company’s future successes and providing employees with a tangible recognition of their service.
Founded in 1992 by Chairman Steff Wright and his brother Jerome, Gusto Group has demonstrated for more than three decades that it is possible for businesses to enrich the communities they serve. With a focus on pursuing sustainable processes within construction and manufacturing, the Group has stayed committed to achieving shared success and fostering a culture of entrepreneurship.
Wright says of the decision: "I wanted to find a way for the employees that have worked so hard to build Gusto Group into a £25 million business, to be the ones to benefit from its continued growth.
“Ultimately, we want employees to feel invested in and committed to our collective success and by granting workers the opportunity to become shareholders, we hope to build a stronger sense of unity, motivation and accountability throughout the organisation. As they arrived at Gusto Fest, every employee was given a ‘Gusto Employee Owner’ hat - a symbol of our shift towards employee ownership. From now on, we’ll all be wearing our ‘employee owner hats’ when it comes to making decisions about the future of the business.
All employees, from new starters to those that have been with the company for many years, have now been allocated growth shares to encourage business growth before the Group transitions to an EOT on 31st March 2027. Over the next nine to 12 months, any new starters joining the company will also be entitled to shares.
Gusto Group is comprised of several purpose-driven B Corp accredited companies operating in the manufacturing, construction and architecture sectors, including: Gusto Construction, Rototek and Studio-G. All employees will have the opportunity to sit on the trust board, ensuring that there is representation and perspectives from all arms of the business as to how the company is run.
The workforce’s reaction to becoming shareholders and the transition to becoming an employee-owned company has been overwhelmingly positive. Many have cited the benefits of having a greater voice and involvement in the business, as well as improved job security and financial stability.
An employee at Gusto Group said of the news: “It means when the business wins, we all win. We’ve gone from colleagues to co-owners, and it feels great!”
A second Gusto Group employee added: “Becoming part of an employee-owned business through the EOT brings some clear benefits for me – both professionally and personally. It’s rewarding and empowering to know my contributions will help drive value that will come back to the business and shape how the business evolves.”
"Being part of an EOT means we're not just employees - we're co-owners,” added an employee from architecture firm Studio G. “We all have a say and a reason to make the company a success. The extra income from the shares means that I can treat the family that bit more, meaning it's not just me who benefits from being part of the business - it's another incentive to make a company we can take pride in being part of!"
A long-standing member of Rototek’s Newark operation commented: “It's nice for me to have shares in a company that I have worked for 25 years. I feel that this is a major step towards recognising the effort that I and everyone else has put in to help the company's growth and success. I can't decide whether to use this for one big holiday or a little motorhome for retirement!”
“Becoming part of an Employee Ownership Trust has been a positive change for me,” a Gusto Construction employee remarked. “I feel it's a brilliant setup for everyone working here, as it makes us all feel more like we own a piece of the company. Personally, the financial side of the EOT is a huge bonus. I'm looking forward to using those payments to save up for a deposit on a house, or if I've already bought one, they'll be a massive help with the mortgage repayments.”
An employee from Rototek’s Worksop factory added: “Since the EOT announcement, morale has improved as it feels like the company is valuing us more. The promise of rewards is boosting work efficiency. Colleagues feel more secure in their jobs and are excited about the end-of-term payments, which they plan to use for holidays, home improvements, buying a car, and achieving greater financial stability.”
Wright firmly believes that businesses should not solely measure success by profit margins, but also by the positive impact they create for their employees, communities, and the planet. “By putting people at the forefront of our business, we are not only investing in the future of our company but also the people who make it function.
“A vast number of employees are very disconnected from the businesses that they work for. Resolving this disconnect has become part of our broader purpose as a business, as has ensuring that people feel invested in our collective success.
“The journey that we've been on as a company has been to engage with and empower employees and then align our benefits to them. And our decision to issue growth shares and become employee owned, presented the ultimate alignment of benefit and responsibility to our employees. We can’t wait to see the business go from strength to strength.”