One in six larger family businesses shares ownership with employees

Family businesses with experience of employee ownership are highly positive about it. For example, 95% say that employees who are co-owners are more motivated to contribute to the company’s success and feel more engaged. In addition, 89% expect employees to stay with the company longer.

“The strongest advocates of employee ownership are family businesses that already have experience with it. They see greater engagement, increased motivation, and employees who remain with the company for longer. The study also shows that sharing ownership is becoming a topic open for discussion among a growing group of family businesses,” says Prof. Roberto Flören, RSM Professor of Family Businesses and Business Transfer at Nyenrode Business University.

From employee to co-owner

Within family businesses, employee ownership is still primarily reserved for a select group. At 89% of the companies offering participation, the scheme is intended for senior management and key individuals within the business. At 11%, the scheme is open to all employees. On average, participating employees hold 13.4% of the ownership.

Interest is also increasing. Of the family businesses that do not currently have employee ownership, 24% are considering introducing it in the future for senior management and other key individuals. Six per cent are considering a scheme for all employees.

“Employee ownership can be a very powerful tool for retaining employees within a family business, but the tax structuring requires careful attention. The valuation of shares, the method of financing and the conditions under which employees participate can all have tax consequences. The starting point should therefore not be how employees are allowed to participate, but why. Only then can a scheme be designed that fits both the company and the relevant tax framework,” says Laura Bles-Temme, Managing Partner at RSM.

Opportunities and dilemmas

For family businesses that use employee ownership, it is primarily a way to retain specific employees or groups of employees for the long term. For 47%, it is also an attractive alternative form of remuneration that does not immediately reduce the company’s liquidity. Competitive pressure (16%) and growing demand from employees themselves (11%) also play a role in the decision to introduce employee ownership.

Nevertheless, the step remains a significant one for many family businesses. Of the family businesses without an employee ownership scheme, 69% do not want to relinquish any ownership. In addition, 53% cite tax, legal and administrative complexity as an obstacle. Concerns about participating employees leaving the company (49%), slower decision-making (44%) and the financial consequences of buying back employee holdings (35%) also make many family businesses reluctant to proceed.

Mark Buitenhuis, Managing Director Private Banking Regions Netherlands at Van Lanschot Kempen: “For many family businesses, attracting and retaining good employees remains an important issue. This study shows that employee ownership can help family businesses address this challenge. At the same time, it is important for business owners to consider carefully what does and does not suit their company and long-term strategy.”

Retaining employees requires more than salary

Family businesses still see a positive corporate culture as the most important foundation for employee retention. A pleasant working environment (97%), open communication (90%), opportunities for personal development (88%), and a good work-life balance (80%) are most frequently cited as reasons why employees stay.

At the same time, the pressure to attract and retain talent remains high. More than 70% of family businesses are concerned about labour market shortages, and 45% fear consequences for the continuity of their operations. Against this backdrop, business owners are looking more closely at new ways to retain talent. Employee ownership is increasingly seen as a complement to good employment practices, development opportunities, and a strong corporate culture.

About the study

The study Attracting and retaining employees in family businesses was conducted by Nyenrode Business University, RSM and Van Lanschot Kempen. Between 1 and 19 June 2026, 113 Dutch family businesses participated in an online survey. The sample includes a relatively high proportion of larger family businesses. For more details, please refer to the full Dutch press release: "Een op de zes grotere familiebedrijven deelt eigendom met medewerkers".