this post was submitted on 07 Apr 2024
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Apropos of nothing, there is research[1] showing that worker-owned coops are less likely to go bust than conventionally-managed firms, and that greater employment stability is likely one reason for their greater resilience. IE they're not as likely to use layoffs when times get tough and therefore don't pay as many of the costs associated with higher turnover and lower retention. Stronger, more invested teams = more resilient company. Or something like that.
[1] http://web.archive.org/web/20240105070617/https://journals.sagepub.com/doi/10.1177/001979391406700108
And I bet any nepotism at least comes with competence, unlike many stories I see about private businesses where "friend/relative of the boss" can mean a blank check for incompetence and corruption. Personal relationships don't translate to good leadership.
Oh and there's probably less of an emphasis on hiring business majors since the workers on the floor tend to have a better idea of how damaging decisions that seem to make more money on paper can be.
There’s also the idea that as employees rise through the ranks, they have a better understanding of how their old jobs are done. Let’s say you’re in a manufacturing job: Nothing is worse than being managed by a business degree who doesn’t even know how to turn on the equipment you use every day. Because that manager has no idea what is and isn’t possible to do with the machinery, what kinds of timeframes to expect from jobs, etc… So you’ll end up getting unrealistic expectations, based purely on numbers on paper.