Well-being at work: What if worker-owned cooperatives had it all figured out?
Claude Fabre, University of Montpellier and Florence Loose, University of Montpellier
The 2023 pension reform, which confirms the raising of the legal retirement age to 64, raises questions about the sustainability of the workforce. According to Dares, the statistical division of the Ministry of Labor, 37% of employees did not feel capable, in 2019, of continuing in their jobs until retirement. Exposure to occupational risks—whether physical or psychosocial —is a key factor behind this high figure.
The recruitment challenges and various forms of resignation (whetherovert or silent) that many companies are facing can be partly attributed to the perceived working conditions in the industry or in the position being offered, and, more broadly, to the disconnect between what people expect and what employers offer. Two years of the COVID crisis have profoundly changed the landscape. It is therefore no surprise that experts now consider Quality of Life and Working Conditions (QVCT) to be a key factor in a company’s attractiveness, employee retention, and performance.
In light of this situation, the authors of the Dares study conclude:
"A work organization that promotesautonomy and employee participation and reduces work intensity tends to make work more sustainable."
Exposure to risks—whether physical or psychosocial—goes hand in hand with an increased sense of unsustainability. Autonomy and social support (from supervisors, colleagues, or employee representatives), on the other hand, promote sustainability, just as participation in decision-making mitigates the impacts of organizational changes.
This type of organizational structure is found specifically in cooperative and participatory companies (SCOPs). These are public limited companies (SA) or limited liability companies (SARL) that have become “social and solidarity economy enterprises” (SSE) by choice and through accreditation. The principles (a purpose other than profit, a dual human and economic mission) and the rules of the ESS (governance, profit sharing) are thus enshrined in their articles of incorporation.
In these structures, employees are the majority shareholders: they hold at least 51% of the equity capital and 65% of the voting rights. Power is exercised democratically, and profits, risks, and responsibilities are shared. SCOPs thus differ from traditional companies in their objectives and guiding principles, the membership status open to their employees, and their decision-making, organizational, and compensation structures. Quality of life and well-being at work are at the heart of the project and are not secondary or optional considerations.
Following two surveys conducted among 205 managers and 554 employees (as part of a research project in partnership with the General Confederation of SCOPs, the CGSCOP), we were indeed able to observe high levels of engagement and commitment at work, as well as a widespread sense of well-being.
Effective power
Both managers and cooperative members report high levels of well-being on average. The table below summarizes our respondents’ self-assessments (on a scale of 1 to 10):
This sense of well-being is fostered by cooperative practices (work organization, decision-making, compensation) that influence employee involvement, commitment, and sense of security. It also impacts the company’s economic performance.
Employees particularly value their decision-making power. The sense of “empowerment”—that is, of autonomy and “taking charge”—is indeed particularly high (8.32/10). According to American researcher Gretchen M. Spreitzer, this is what employees experience when they exercise effective power over their professional environment, through a sense of competence, an impact on what happens in their company, autonomy in decisions concerning their work, and the meaning they find in their work.
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Thus, even though not all members exercise their right to speak in the same way and participation varies in practice, these companies are characterized by a relatively high level of member involvement in strategic and operational decision-making.
For cooperative members, this decision-making power fosters a sense of genuine involvement in their organization. The table below shows employees’ self-assessments regarding different levels of involvement:
Finally, it is worth noting that employee-owners exhibit higher levels of affective commitment, normative commitment, andempowerment (through feelings of competence, autonomy, and impact), as well as a greater sense of job security than non-owner employees.
Psychological contract
Overall, our respondents believe that the so-called psychological contract with their company is unique and specific to this type of organization. Indeed, the contract between an employee and a company is not merely legal; it is also moral. What I can give (my contributions) and what I can receive (my compensation) go beyond the employment contract. For example, I offer my loyalty in exchange for a good quality of life at work. It is a “deal” that employee-partners consider to be balanced.
Our study highlights the importance of cooperative values (support, sharing, democratic participation, the right to speak up, etc.) in the psychological contract within worker-owned cooperatives. These “intangible” aspects of the contract help offset the more tangible aspects (compensation, training, career development, etc.) where worker-owned cooperatives do not outperform traditional companies.
In fact, cooperative members believe that their “intangible” contract is all the more valuable because it would be very difficult to find elsewhere, in traditional organizations. Furthermore, this intangible aspect of the contract makes it possible to predict key variables such as the well-being of cooperative members, as well as the high sense of purpose they derive from their work.
The need for "transformational" leadership
However, for everyone—both leaders and members—the level of well-being depends on the leadership style. Even though members are actively involved and the terms “manager” or “advisor” are often preferred over “leader” or “manager,” the presence of a leader to bring the cooperative model to life remains essential.
Surveys reveal the importance of the leadership style adopted within these organizations. The so-called “transformational” style (which encourages autonomy, recognition, and the empowerment of each member) is perfectly aligned with the values and operations of worker cooperatives. Such a leader therefore has a very positive influence on the well-being at work of all members, including their own. Conversely, if their style is more “transactional,” their professional behaviors appear ill-suited to cooperative operations and incompatible with the aspirations of the cooperative members: moreover, this style does not promote either their own well-being or that of others.
These results highlight a virtuous cycle, characterized not by highly innovative systems—as one might imagine—but by clusters of organizational and managerial practices that are both personally fulfilling and economically efficient, guided by values and objectives firmly rooted in the bylaws and non-negotiable. While it is not without weaknesses nor exempt from the constraints faced by any business, one of the SCOP’s successes, in the current context, is its ability to successfully combine the collective (living together and solidarity) with the individual (autonomy, responsibility, development), and the human with the economic. Yes, it is possible!
According to the SCOP network, as of the end of 2022, there were 2,606 such organizations, operating across all sectors of activity, accounting for 58,137 jobs and €8.4 billion in revenue. These cooperative enterprises also recorded 11% growth compared to 2021. The 5-year survival rate increased by 3 percentage points compared to 2021, reaching 76% versus 61% for all French companies. The resilience of SCOPs therefore remains a significant asset for the French economy, not only in terms of employment policies but also in policies aimed at promoting well-being in the workplace.
Claude Fabre, Associate Professor of Management Sciences (specializing in human resources), University of Montpellier and Florence Loose, Associate Professor of Social Psychology, University of Montpellier
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