The Rise of Employee Ownership in Construction Firms 

Written By Emma Williamson

What is Employee Ownership

In simple terms, employee ownership means that the people who work for a company also own a part of  it. Instead of ownership sitting with a few shareholders or an external buyer, it’s shared  with the employees themselves.

There are a couple of ways this can happen. In some cases, employees might personally own shares. But in the UK, by far the most popular route is through something called an Employee Ownership Trust (EOT).

A Quick Breakdown: ESOPs vs. EOTs

You might’ve come across the term ESOP before that stands for Employee Stock Ownership Plan, and it's more commonly used in the United States. ESOPs allow employees to gradually build up shares in the company over time, often as part of their retirement benefits. 

In the UK, the EOT model has really taken off since it was introduced in 2014. It was designed by the government to make employee ownership simpler, more sustainable and a great succession plan for business owners who are looking to step back or retire.

Here’s how it works: rather than giving individual employees shares, an Employee Ownership Trust holds the majority (or all) of the company’s shares on behalf of everyone. Think of it as a collective umbrella that represents the whole team. Employees don’t have to buy in or manage shares directly; the trust does that for them. But they do benefit from the company’s success through things like bonuses, profit-sharing, and a stronger voice in the direction of the business.

Find out more here: The difference between ESOP’s and EOT’s

What it looks like in practice

In the construction world, where many businesses are family-owned or run by founders who've spent decades building them up, this model is a game-changer. When it’s time to hand over the reins, selling to an EOT gives owners a way to protect their legacy while rewarding the people who helped build it.

And because the EOT isn’t an outside buyer, there's no risk of a culture shift, mass redundancies, or the company being stripped for parts. It stays independent. It stays local. It stays yours, just shared with the people who’ve put their heart into it.

When everyone’s in, everyone wins

From labourers to engineers, site managers to support staff, everyone has a role in getting the job done right and on time. And when that team knows they’re not just working for a company, but helping to grow something they own a part of, the mindset shifts.

You get more pride in the work. More responsibility on-site. More care in the day-to-day details.

And that translates into better results across the board:

  • Fewer mistakes and rework

  • Higher productivity and smoother handovers

  • Stronger client relationships and repeat business

The idea is simple: if you’ve got skin in the game, you’re going to give it your best.

Keeping your best people

One of the biggest headaches in construction today is keeping hold of good people. Skilled workers are getting harder to find and even harder to keep. Employee ownership changes that.

When people feel genuinely valued and better yet, when they actually own a piece of the business they’re more likely to stick around. It’s not just about the money. It’s about feeling like you’re part of something, not just a cog in the machine.

And in an industry where loyalty, experience and team chemistry are everything, that’s a big win.

More resilient when times get tough

Construction’s a rollercoaster. Market swings, interest rates, supply chain chaos you name it, the industry’s seen it. But employee owned companies tend to ride the bumps better.

Because people feel invested, they’re more willing to roll with the punches. Whether that’s finding smarter ways to work, trimming waste or being flexible when needed, the team pulls together to protect their business.

That sense of shared ownership builds a culture that can weather storms and come out stronger on the other side.

How do employees benefit from this change?

Employee ownership also gives workers a stronger say in how things are run. While you might not be calling every shot, most employee-owned firms involve their staff in decisions in a much more meaningful way whether through regular updates, working groups or advisory panels.

You start to feel heard, not just hired.

For people working in construction where top-down decision-making is often the norm this is a refreshing shift. It means that if something’s not working on-site, you’ve got a better chance of raising it and seeing it change.

Of course security is a massive factor in relation to benefits. When a construction company is sold to a third party, there’s always a risk of restructuring, redundancies, or changes that leave workers in limbo.

But when the company is employee-owned? The focus is on protecting jobs, not cutting costs for shareholders. The team becomes the priority not the afterthought.

There’s a sense of long-term stability that’s hard to find elsewhere in the sector. And for people with families, mortgages, or apprenticeships to finish that peace of mind matters.

What makes employee ownership attractive for construction companies?

The construction industry isn’t like any other. It’s hands-on, local, built on trust and deeply connected to its people. Projects come and go, but it’s the teams behind them, the site crews, planners, engineers, and office staff that hold everything together. And in an industry like this, how you treat your people really matters.

That’s exactly why employee ownership is starting to turn heads in construction.

One of the sector’s most common struggles: keeping hold of experienced, committed workers, as mentioned above. When the pace is fast and the job is tough, it’s easy for people to move on if they don’t feel valued. That’s where employee ownership can make a big difference.

This kind of long-term thinking is exactly what construction needs, especially when projects rely so heavily on team consistency, trust, and craftsmanship.

Another challenge that’s quietly affecting construction firms across the UK? Succession.

A large number of construction businesses are still run by founders or families. Many of them are reaching a point where they’re ready to retire or take a step back, but they don’t want to sell to a faceless corporation or risk their legacy falling apart.

That’s where employee ownership really shines.

Rather than selling out, founders can sell into the very people who helped build the business. It’s a way to pass the torch without losing the company’s values, its independence, or its local roots. It gives owners peace of mind, and it gives employees a reason to roll up their sleeves and invest in the next chapter.

But it’s not just about what happens inside the company.

These days, clients and partners are paying attention to how businesses operate, not just what they deliver. Public sector tenders, large contractors and even private clients increasingly want to work with firms that show clear values of fairness, inclusivity and community impact.

Being employee-owned sends a clear, powerful message:
1. We look after our people.
 2. We’re committed to our community.
3. We’re in it for the long run.

That kind of reputation is a huge asset, especially when bidding for contracts or attracting skilled workers who want to be part of something meaningful.

Employee owned construction companies in the UK

Across the UK, a growing number of construction firms have embraced employee ownership as a way to secure their future, reward their people and stay true to their values.

From London to Llandudno, Glasgow to Kent, construction firms of all sizes are beginning to realise that ownership models aren’t just for the tech world or professional services. They work just as well, if not better in industries built on loyalty, grit, and teamwork.

As construction faces growing pressure from changing regulations, the push for net zero, and the digital tools reshaping how we build, one thing is clear: companies that invest in their people will be the ones that stand the test of time.

Here are just a few standout names:

Based in Glasgow, Tough Construction became Scotland's largest employee-owned construction company in 2023. Established in 1974, the firm specialises in projects for house builders across Central Scotland, Perthshire, Fife, and Ayrshire. With over 500 staff members, the transition to an employee ownership was a strategic move to safeguard the company's independence and reward its dedicated workforce.

Elland Steel Structures Ltd, one of the UK's leading steelwork contractors, transitioned to employee ownership in 2024. This move aimed to secure the company's long-term future and recognise the essential role of its team in driving success.

Kent-based Nusteel Structures Ltd, a specialist in steel bridge fabrication, transitioned to employee ownership in 2024. Founded in 1954, the company's move to an EO was designed to preserve its legacy and empower its workforce.

Barnfield Construction Group, a reputable firm operating predominantly across the Northwest, became employee-owned in early 2024. Founded in 1976 and employing over 150 people, the transition aimed to strengthen collaboration and ensure the business remains embedded in the local community.

Emma Williamson
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