codecentric AG is initiating a unique employee participation model. The IT consultancy, headquartered in Solingen, is thereby guaranteeing its employees both financial and substantive participation in the company.
Company events, mobile working, an attractive salary, a company bike – with these and similar offerings, companies advertise for potential applicants in job postings. Because employees know their market value, and the demands placed on employers have risen significantly again in recent years.
At the same time, the lists of so-called "benefits" for employees keep featuring the same items over and over again. Generating a genuine unique selling point as an employer has become difficult.
As a service provider in the IT sector, codecentric AG is well aware of the challenges posed by the general shortage of IT professionals – and with it, the challenge of considering how a company could position itself even more strongly as an attractive employer and stand out from its competitors.
"We are convinced that a deep identification with one's own employer, and thus also its long-term attractiveness, can only be achieved through genuine participation,"
says Verena Deller, member of the Board of Directors at codecentric.
"Many employees want to have influence, they want to have a say, to help shape things, and to be involved in decisions – both internally and externally."
Employee Participation Reimagined
For this reason, the non-publicly listed codecentric AG has initiated a unique participation program.
"Through this program, all employees will have the opportunity to participate in codecentric AG in an entirely new way – both financially and substantively. Concretely, this means that on the one hand, every employee can acquire shares in codecentric AG, and on the other hand, a company parliament will be established,"
says Richard von Knop, Head of Participation Management, Governance and Committee Work at codecentric, who developed the model.
By acquiring shares, employees are not only intended to become co-owners of codecentric AG, but also to participate in its long-term value development. The owners were happy to make a portion of their shares available for purchase by employees.
The acquisition is carried out through a dedicated company in order to pool the interests of the employees. This employee company is supported administratively and financially by codecentric, so that no effort or costs arise for colleagues. The employees themselves elect the management of the company. Even the name of the company was chosen by the employees: In true IT company fashion, they opted for the name "Cody McCodeface GmbH" – a variation of a well-known internet meme.
The associated parliament is a self-organized, agile information and exchange body, meaning that everything of importance to colleagues is discussed. There are no fixed requirements, obligations, or formalities. What makes it special is that not only members of the Board of Directors, but also members of the Supervisory Board and shareholders participate in the parliament. This means that in the future, the employee representatives, board members, supervisory board members, and shareholders at codecentric AG will regularly sit together at one table.
What codecentric AG Employees Are Saying
IT Consultant Stephan Köninger chose to participate because he believes in the company's values, its people, and the quality of the solutions generated for clients:
"Through my participation, I am underlining my personal connection to the company and also hope to have more influence over decisions together with my colleagues than before."
Agile & Product Coach Steffen Oehme is motivated less by the prospect of financial gains or the right to have a say, but rather by an idealistic fundamental principle:
"At codecentric, I already find an absolutely unique environment with a high degree of personal responsibility and room for creativity. The step toward formal and also financial participation shows me once again that the company lives its values and understands its employees as its most important success factor."
For Janine Felten, IT Consultant, participation is part of identifying with her employer:
"You spend so much time at work and contribute to making the company successful. That's why it's important to me that I can and want to identify with my employer, and the opportunity to now also participate in the value development increases my sense of belonging."