“Do it for the right reasons”
Target Components (employee owned since 2022)
Specialism: Components distribution
HQ: Castleford
Staff: 54
Q&A with MD Michael Lawrence
What was the trigger for you becoming an employee-owned business?
Our owners made the decision to sell the business but it was important for them to ensure all employee jobs were safeguarded. The EOT option provided the best way to do this and was a great fit with the existing culture at Target.
What was the most challenging aspect of becoming an EOT?
Completing all the paperwork. We found the transition a natural one as we already had an open, collaborative culture with a high focus on customer service and employee engagement. So for us the change made sense.
You’ve been an EOT since 2022. Has it had any impact on any of your KPIs, for instance staff retention?
Target has grown since becoming an EOT and our NPS and eNPS scores as measures of customer and employee satisfaction have both risen – further evidence that Target is a great place to work.
What’s the biggest upside of being an EOT, and are there any downsides?
The most important thing for us is how the EOT aligns to our culture and how we work. The tax benefits on profit share proceeds are an obvious benefit for all our employee members.
Are you aware of any mistakes or pitfalls other EOTs have made or encountered?
A good business is a good business regardless of its ownership status. The same applies to a bad business, so if an EOT business is struggling, I would suggest it is for a fundamental reason, rather than its EOT status.
What message would you have for other MSPs or IT consultancies contemplating becoming an EOT?
Do it for the right reasons, namely because the principles of a strong EOT align to your culture, how you work and how you treat your employees. If you are just doing it for the benefits of the principal owners then it will not work to the benefit of your employees or the long-term success of the company.
