EVCA & CMBOR Report: Private Equity Can Improve Employee Relations

A new study, conducted by CMBOR (the Centre for Management Buyout Research) in association with the EVCA, argues that private equity ownership rarely harms employee relations and, in many cases, actually improves it. The most positive effects were seen in liberal free market economies (UK, etc.), while heavily regulated economies typically reported that the effect of private equity on employee relations was neutral.

Post buyout, real earnings of non-managerial employees increased in over half (51%) of cases, while 47% experienced no change. The amount spent on non-managerial employee training increased in 45% of cases, and fell in just 3% of instances.

Employee best practice was seen to improve, with regular team briefings up from 71% of cases to 90% post-acquisition, while the presence of a consultive committee also rose from 50% to 63% of firms. The number of companies with a unionized workforce post-buyout remained static at 71%.

(Apologies for the links to the reports lately instead of enabling direct downloads.  Since wordpress updated their dashboard a couple of days ago there have been a lot of bugs and glitches.  I’m trying to bypass a few of the problems and hopefully they’ll fix it soon).

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