Work With Purpose: How Ownership Transforms Companies From Within
As the world wrestles with a global recession amid economic uncertainty, it’s a tough time to be a business owner. At Ripple of Change, we’re always on the lookout for innovative solutions that benefit every human in the equation. Many times, we find these solutions tend to lie off the beaten path. So when we heard about Firefly Insights, a company that advises business owners on succession planning, our ears perked up. Firefly is an advocate for employee ownership models—unique company structures that preserve company legacies while building resilience through shared stakeholder investment. It’s a fundamental shift in how people relate to their work and we were eager to hear more. Here’s Jennifer Williams, Firefly’s founder, with answers to our questions.
You’re a champion of the employee-owned model and built your business around this framework. For those unfamiliar with the concept, can you explain what it means and how it helps create a workplace that advocates for its employees?
Employee ownership, at its core, means that employees hold an equity stake in the business they work for. That stake can vary significantly—ranging anywhere from 1% to 100%—and the model itself can be designed to include a select group of employees or be far reaching, encompassing all employees.
There are a few different forms of employee ownership in Canada, but the two most widely used are Employee Share Ownership Plans (ESOPs) and the newly introduced Employee Ownership Trusts (EOTs). In an ESOP, employees directly purchase shares in the company. We often see this used in management buyouts or as a tool for recruitment and retention, particularly because the model is highly customizable.
EOTs, on the other hand, follow a model that has seen tremendous success in the UK and was only introduced in Canada in 2024. Under this structure, all employees become beneficiaries of a trust that holds a controlling interest in the business (at least 51%). The trust itself owns the company, eliminating the need for employees to personally finance the purchase. For selling owners, this option is especially compelling—it currently comes with a $10 million lifetime capital gains exemption for qualifying sales completed before the end of 2026.
At a macro level, employee ownership helps keep businesses locally rooted and employees in jobs. With 76% of small business owners in Canada planning to exit within the next decade—and third-party or family sales increasingly difficult to secure—employee ownership offers a viable, sustainable alternative. It can keep the doors open, protect the legacy of the business, and provide continuity for the team that helped build it.
Beyond that, the shift in mindset is powerful. When employees think and act like owners, it creates a culture of shared purpose, accountability, and trust. That often translates into higher engagement, stronger performance, and in many cases, better wages and work-life balance. Employees feel like they matter—because they do. And that sense of ownership is not just about equity. It is about having a voice, a purpose, and a stake in the future.
Beyond that, the shift in mindset is powerful. When employees think and act like owners, it creates a culture of shared purpose, accountability, and trust.
One of your goals is to make employee ownership more accessible in Canada. What do you think is the most misunderstood part of this model and how do you help people see that it can benefit everyone involved?
Before we get to the common misunderstandings, it is important to recognize the biggest barrier to employee ownership in Canada: most people do not know it exists. Business owners seeking succession advice often turn to trusted professionals—accountants, lawyers, brokers—who may themselves be unfamiliar with employee ownership or unsure of how it works. If the advisor is not presenting it, the owner never sees it as an option. So the first step toward accessibility is simple but powerful: education. The more informed the owner, the better their decision-making can be.
A common misconception about employee ownership is that it means giving up control. Business owners often worry they will lose authority or be outvoted on major decisions. In reality, ownership, governance, and day-to-day decision-making are distinct. Employee ownership affects who holds shares, not who runs the company. Business decisions continue to be made by the leadership team, just as before. What changes is the sense of shared investment and long-term commitment—not the company’s management structure or authority.
Another misunderstanding is the assumption that there is a standard approach to employee ownership. The truth is, every business has its own goals, people, and financial and cultural realities. That means every ownership transition must be thoughtfully designed to fit its specific context. At Firefly Insights, we help companies design and implement holistic plans that reflect what makes them distinct—because no two businesses are the same, and neither are their employee ownership journeys.
We also encounter confusion about our role in the process. As traditional business sales are often framed as buyer versus seller—with advisors on either side—people sometimes expect that dynamic here as well. But employee ownership is different. While we work closely with the selling owner to help them meet their goals, we also function as a neutral facilitator—surfacing concerns from both sides and guiding the process to a structure that works for everyone involved.
And that is the key point: when done well, employee ownership benefits everyone.
For owners, it offers a strategic exit—one that protects the legacy they have built, keeps the business in the community, and provides a path to liquidity. For employees, it creates a sense of purpose, stability, and financial participation in the company’s success. And for the business itself, it means continuity—retaining its culture, institutional knowledge, and customer relationships, all while becoming more resilient over time.

You’ve spoken about how employee ownership can be especially valuable during a recession. Can you share why that is? What makes employee-owned companies more resilient during tough economic times?
Employee ownership builds resilience because it changes the relationship people have with the business. One way we often explain it is through the analogy of renting versus owning a home. When you rent, you use it, you rely on it, but you do not necessarily feel responsible for its long-term care. When you own something, the small things matter more, you plan ahead, you take extra care. That sense of responsibility—of care—is exactly what we see in employee-owned companies.
The ownership mentality becomes one of the company’s greatest strengths during turbulent times. Employees who have a stake in the business are more likely to step up, make sacrifices, and find innovative ways to cut costs or boost efficiency. It is not about protecting someone else’s bottom line—it is about protecting something they are invested in, both emotionally and financially.
These companies also tend to offer more stability, recognizing their people as their greatest asset. Rather than turning to layoffs as a first option, they often look for alternatives—reducing hours, reorganizing teams, or putting larger spending decisions on pause. That approach keeps people employed, preserves institutional knowledge, and protects morale, which is critical for long-term recovery.
Transparency plays a key role, too. Employee-owned businesses tend to be more open about their financial position, which helps build trust and a shared understanding of what is at stake. That trust makes it easier to adapt quickly and collectively, without the fear or uncertainty that often plagues traditional top-down workplaces.
Finally, employee ownership fosters alignment. And in uncertain times, that alignment—paired with a strong sense of shared responsibility—can be the difference between weathering the storm and being swept away by it.
Employees who have a stake in the business are more likely to step up, make sacrifices, and find innovative ways to cut costs or boost efficiency. It is not about protecting someone else’s bottom line—it is about protecting something they are invested in, both emotionally and financially.
No workplace is without challenges — even those with shared ownership. When conflict or major problems arise in an employee-owned company, how does the model shape the way people work through it?
No model eliminates conflict entirely—but employee ownership tends to change the way people approach it. When individuals have a stake in the outcome, the conversation shifts from “that’s not my problem” to “how do we fix this together?” Ownership creates a sense of shared responsibility, which can lead to more thoughtful, solutions-focused dialogue—even when the issue is complex or emotionally charged.
That said, employee ownership does not fix a toxic or dysfunctional workplace. If a company has a poor culture—where trust is low, voices are not heard, or leadership is disconnected—simply adding an ownership structure will not turn things around. But when a company already has a solid cultural foundation, employee ownership can reinforce and deepen it. It can provide the tools and incentives to grow a culture of transparency, accountability, and mutual respect.
In traditional workplaces, conflict can often be top-down or siloed. People wait for leadership to intervene or avoid raising concerns altogether. In an employee-owned company, there are often more open lines of communication—through representative governance, regular forums, or clearly defined roles within the ownership structure. These mechanisms do not prevent conflict entirely, but they do create more space for it to be addressed constructively.
Importantly, employee ownership tends to foster long-term thinking. When people feel invested—in both a financial and emotional sense—they are more likely to stay engaged, speak up early, listen actively, and seek resolution that strengthens both the business and the relationships within it.
Ultimately, the model encourages accountability across the board. That sense of mutual investment does not eliminate hard conversations—but it often leads to a more resilient workplace culture, one that is better equipped to navigate challenges when they arise.
You’ve helped businesses transition their ownership to employees — a massive shift in power and responsibility. What is that moment like for the founder? And what kind of reactions do you see from employees when they realize they’re not just workers anymore, but owners?
It is a significant moment—for both the founder and the employees. For the founder, transitioning ownership to employees often brings a mix of emotions. There is pride in seeing the business continue in the hands of the people who helped build it. But there can also be discomfort. Shifting from being the sole decision-maker to stepping back—whether partially or fully—is not always easy. It can feel like a loss of identity. That said, one of the major advantages of employee ownership is that it allows founders to transition on their terms. Unlike a third-party sale, where ownership and legacy are often handed over entirely, employee ownership offers the flexibility to remain involved, step away gradually, or make a full exit. That level of control can make the process more intentional and, ultimately, more aligned with the founder’s values.
For employees, it tends to unfold over time. Initially, the idea of being an “owner” can feel abstract—particularly if there is no direct financial buy-in. But as the transition progresses, and as education and communication increase, people begin to understand what ownership means in practice. That is why we emphasize that this is not just a transaction—it is a transition. Many employees are stepping into areas of responsibility that are entirely new to them: things like interpreting financials, understanding tax implications, or thinking strategically about long-term sustainability. That requires alignment, support, and often, a significant investment in training.
When the ownership mindset starts to take hold, you can see it in how people engage. They approach decisions with a longer view, they ask more strategic questions, and they begin to see themselves not just as employees, but as stewards of the business. It is a gradual process, but when it works, it can be incredibly powerful.
—
Employee ownership is a rare bird in the world of company structures, creating benefits for founders, employees, and communities alike. While it requires careful planning and a commitment to building a culture of ownership from within, the rewards can be worth the effort—resilience during economic downturns, protecting local jobs, and employees deeply invested in long-term success. It goes beyond a succession strategy, to an organization that puts its people at the center.
Explore the basics of employee ownership
Visit Firefly Insights or read up on ESOPs and EOTs to understand how they work and which model might suit your business or workplace.
Start a conversation with your team
If you’re a founder or manager, ask your team: What would shared ownership mean to us? If you’re an employee, raise the topic at your next strategy session or town hall.
Support businesses that are employee-owned
Seek out and amplify local businesses that are employee-owned. Your dollars and social shares help strengthen community-rooted companies that invest in their people.