INTRODUCTION TO PARTNERSHIPS
Why switch to a partnership model?
We believe that this new business model will provide a more attractive way of engaging with team members and, perhaps more importantly, it will allow the business, as a whole, to be more productive, more successful and more profitable.
Partners, not employees
Should you choose to make the switch, those invited to join the partnership will cease being employees and instead become partners of the business. As such, they will be provided with a quarterly business performance report showing how performance is tracking against targets and encouraged to engage with the other partners in reviewing this progress and building upon it.
Moving staff to this new model is more financially efficient for the business, as it produces a lower tax burden. This means that there will be more funds available for investing in the growth of the business and also for supporting a more generous remuneration plan for partners. Upon joining the Limited Liability Partnership (LLP), all partners will be guaranteed the same net monthly pay, all current benefits and assurances, such as maternity pay, employment rights, etc.
In fact, contract conditions will remain exactly as they are now. Importantly though, team members will also be entitled to a team-wide profit share pool which will pay out on an (annual/bi-annual) basis. More details of the profit-sharing plan will be established shortly. Obviously, the specifics of how the partnership functions will be up to you, the business owner.
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