Why being an Employee Ownership Trust is good for children in care

Written by Capstone Foster Care

What is an Employee Ownership Trust?

An Employee Ownership Trust or EOT is set up by the company’s owners and allows the organisation to become owned by its employees. This is beneficial as it allows for legacy planning, as well as reward staff through shares or bonuses.

Why is this beneficial?

For an independent fostering agency (IFA) being an employee ownership trust is beneficial for several reasons.

• More invested staff. When the company is employee owned, the staff are more invested in good outcomes. A benefit of being an EOT can be tax free bonuses, meaning the employees see a direct impact of the organisation’s success. This leads to a higher retention rate in staff, allowing more consistency for children in care.
• Aligns with values. In the independent fostering world, using profits to reinvest in people proves a better social ethos. In the case of Capstone, heavy investment goes into the Capstone Care Leavers Trust which supports care experienced young people in life beyond care. It’s funded master's degrees, university equipment, driving lessons and essential household items.
• More investment in people means more support for the organisation’s foster carers. For example, Capstone Foster Care’s staffing levels means our supervising social workers have low caseloads which are weighted based on complexity. Low caseloads enable the supervising social worker to build real relationships with their foster carers, they know the ins and outs of what is going on with easy family and is always around for a chat.
• More focus on training. Well trained staff and foster carers means a more knowledgeable team of people surround each child. At Capstone Foster Care, our in-house therapeutic service (MATTS) was developed after identifying a growing need for therapy services for traumatised children, meaning their needs are being met at the point of need.
• It future proofs the business. With an EOT in place, the organisation won’t be changing multiple hands over time, which means consistency and values remain over time. Stability is of vital importance to children in care.
• Allows a greater platform for employee voices to be heard. Ultimately in an EOT the business will still be led by a senior leadership team, however, staff have much more say in suggestions and changes to the direction of the business. This, in turn, means that the children’s voices are also heard.

By becoming an Employee Ownership Trust, we at Capstone Foster Care have found that it greatly improves employee engagement, enables a sense of achievement and has brought a focus on wellbeing.

 Having a more engaged support staff team has only improved the outcomes for children, and increased the satisfaction of the foster carers we support.

Is being an EOT right for you?

There is much information out there about becoming an EOT, and while it is not right for some businesses, it is a great vehicle for legacy planning.

It ensures a succession route which means the people that know the business best will continue to steer it in the right direction.

It shows a dedication to its employees and can offer financial gains for all when the business succeeds.