In times when the "war for talent" is becoming increasingly important, i.e. the search for and retention of qualified employees, it makes perfect business sense to give employees a material and immaterial stake in the company. There are a number of options here in Germany, each of which must be tailored to the specifics of the company and the personnel structure.
Incidentally, the introduction of an employee participation model can also make sense as a means of regulating corporate succession. In many cases, the implementation of the employee participation model also requires a prior restructuring of the structures under German company law.
In addition, an employee participation model can also be used as part of a sale of a company or shareholding, in which one or more employees acquire all or part of the company, possibly over a stretched period.