Are employee ownership models the way forward?

As regulated construction consultancies face increasing scrutiny on competence, employee ownership is emerging as a credible governance model, say Salus CEOs Paul Meadows and Stuart Power.

In regulated construction sectors such as building control and fire safety, trust is not an abstract concept. It underpins how clients select advisors, how regulators assess competence and how professionals are expected to operate when commercial pressure intersects with statutory obligation.

Alongside this, the sector faces a well-documented and growing shortage of highly experienced practitioners. Capacity is not the only issue. Continuity, judgement and institutional knowledge are increasingly difficult to replace – and increasingly valuable. For clients and regulators, the concern is not simply whether a service is available, but whether it is delivered by people with the depth of experience required to navigate a complex and evolving regulatory landscape.

Against this backdrop, questions of ownership and long-term independence have become more prominent. Consolidation, private equity investment and acquisition-led growth have reshaped much of the consultancy market. For some organisations, this has delivered scale and resources. For others, it has introduced uncertainty around succession, governance and whether professional judgement can remain clearly separated from commercial influence. It is within this context that employee ownership is beginning to attract attention – not as a cultural gesture, but as a practical governance structure.

Succession

In December 2025, Salus, a national registered building control approver and specialist building regulations and fire safety consultancy, transitioned to an Employee Ownership Trust (EOT).

As a mid-sized building control and fire safety consultancy operating nationally, and after more than two decades of founder ownership, Salus’ transition was not driven by exit pressure or short-term gain, but by a desire to secure long-term independence, formalise succession planning and retain experienced professionals in a sector where their expertise is both scarce and critical.

From a client and regulator perspective, the most visible outcome is often continuity. Leadership was deliberately retained, and delivery teams, technical processes and professional standards were unchanged. In regulated environments this matters – trust is built through consistency.

An EOT embeds long-term thinking into ownership. There are no external shareholders seeking accelerated returns, no planned sell-on and no incentive to prioritise short-term growth over professional judgement. For clients managing complex or higher-risk projects, this governance provides reassurance that advice is driven by compliance, competence and professional responsibility rather than exit timelines.

For regulators, employee ownership aligns closely with expectations around independence and accountability. The trust structure reinforces that the organisation exists to achieve compliant outcomes in the long term. While EOT status does not replace the need for robust systems, audits and oversight, it removes some of the structural tensions that can exist in other ownership models.

Internally, the impact is less transactional and more cultural. Employee ownership does not remove hierarchy or dilute leadership responsibility. What it changes is the context in which people operate.

In a profession experiencing acute skills shortages, EOT offers a way of buying experienced professionals into the long-term success of the business rather than losing them to short-term incentives elsewhere. That’s because the EOT creates a shared stake in the long-term success of the business. It is both a financial stake in the business (for example, by owning shares) and a say in how it is run (employee engagement). It supports retention, collaboration and skills development at a time of increasing demand on building control and fire safety professionals.

For Salus, this has been a conscious decision to recognise the value of accumulated expertise and professional dedication. Experience is not extracted or traded; it is retained, rewarded and reinvested. That matters in a regulated sector where judgement develops over decades, not months.

What is an Employee Ownership Trust?

An EOT is a UK government-supported mechanism allowing company owners to sell a controlling stake (>50%) to a trust for employee benefit. The EOT structure holds the controlling shares on behalf of its employees, meaning employees do not own shares directly but benefit collectively. The company continues to operate under its board of directors, often with the previous owner involved. It is designed to support long-term business sustainability, employee engagement and succession planning, while allowing founder leadership continuity where appropriate.

Find out more at b.link/GOV_EOB

Practicalities

The transition has also brought practical lessons. Governance becomes more complex as trust boards, employee representation and transparent communication all require time and discipline. This is particularly important in professional consultancies where technical authority and regulatory responsibility cannot be compromised.

Preparation for this is critical. Employee ownership works best where there is already cultural alignment and professional pride. Attempting to use EOT as a corrective for deeper organisational issues is unlikely to succeed.

EOT does not insulate a business from market pressure, regulatory change or recruitment challenges. What it does provide is a framework for addressing those pressures without sacrificing independence. In a sector where credibility is closely tied to perceived impartiality, that distinction is significant.

Employee ownership will not be appropriate for every consultancy. But for regulated practices seeking to balance growth, succession and professional integrity – while retaining scarce expertise – it offers a credible alternative to conventional exit routes.

Ultimately, trust in regulated construction is earned through consistent delivery, competence and ethical judgement. Ownership structures cannot replace those fundamentals. They can however, reinforce them – or undermine them. So in that sense, employee ownership is increasingly being recognised not as a cultural preference, but as a trust signal.

Salus (Building Control & Fire Safety Consultants) is a CABE Company Affiliate – visit salusai.co.uk

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