As Managing Partner of Ison Harrison, Jonathan has been instrumental in shaping our direction and culture, especially through our transition to employee ownership.
As more businesses look to future-proof their operations while staying true to their values, employee ownership is emerging as a powerful and people-first alternative to traditional succession models. At Ison Harrison, we’ve embraced this shift—placing our employees at the heart of the firm’s future.
In this blog, we’re sharing key takeaways from our latest episode on The Business Compass podcast with Richard Coulthard and Jonathan Wearing —offering real-world insights into how a law firm can successfully move to an employee-owned model and what it means for clients, colleagues, and communities.
From Solicitor to Managing Partner: A 25-Year Journey
Jonathan Wearing joined Ison Harrison in 2000, having trained in Manchester and worked in a small high street firm. He was drawn to Ison Harrison by the promise of better training and opportunities for progression—and he quickly found both. Within three years, he became Head of Personal Injury. By 2006, he was made equity partner and took on the role of Managing Partner the following year.
Under his leadership, the firm grew rapidly, especially during challenging periods such as the global recession. Jonathan credits this growth to a strong business model and a culture of collaboration. One of his most impactful decisions was to establish a central hub in Leeds, supported by a network of local branches. While others were moving away from this structure, Ison Harrison embraced it—building deeper relationships with local communities and attracting top legal talent.
Planning for the Future: Exploring Succession Options
As the firm expanded to 16 offices and a £16 million turnover, succession planning became a pressing issue. With three equity partners—Jonathan, Richard, and Dominic—discussions began about how to safeguard the future of the business without compromising its values or culture.
They explored several options:
- Merging with a larger firm – risked loss of autonomy and potential job cuts.
- Bringing in new equity partners – could dilute leadership and complicate decision-making.
- A management buyout or private equity – didn’t align with the firm’s long-term vision or community ethos.
Ultimately, the partners discovered the Employee Ownership Trust (EOT) model—a structure introduced in 2014 that allows business owners to sell to a trust on behalf of employees. This route offered a fair, sustainable path forward, ensuring the firm could continue growing while remaining independent and values-led.
Why Employee Ownership?
Transitioning to employee ownership offered several key benefits:
- De-risking investment for existing owners without an abrupt exit from leadership.
- Maintaining business continuity while gradually involving new directors in governance.
- Boosting staff engagement, with eligible employees receiving profit distributions and having a stake in the firm’s success.
The shift to employee ownership wasn’t just about succession—it was about embedding a sense of shared purpose throughout the firm. Jonathan and the leadership team wanted colleagues at all levels to feel part of the journey and rewarded for their contributions.
Overcoming Challenges: COVID-19 and Complex Compliance
The initial planning began in 2018, but like many businesses, Ison Harrison had to hit pause when the COVID-19 pandemic hit. The pandemic brought uncertainty—but also reaffirmed the value of a resilient, people-first approach. Once operations stabilised in late 2020, the transition resumed.
Navigating the technicalities of employee ownership was complex. It involved:
- Valuation and approval from HMRC
- Authorisation from the Solicitors Regulation Authority (SRA) as an Alternative Business Structure (ABS)
- Creation of a Trust Deed, a Board of Directors, and detailed service agreements
- Implementing safeguards, including a charge on shares to protect founder investments
Jonathan described this as a shift from “owner to custodian”—a mindset change that framed his role as stewarding the firm’s legacy while empowering future leaders.
Communication: Building Trust and Clarity
A major part of the transition’s success came down to communication. The leadership team informed employees six months in advance, with Jonathan personally visiting each office to explain the change.
While the model was new to many, transparency and honesty helped build trust. When the announcement became public, staff responded with positivity and excitement—seeing it not as a top-down decision but as a shared opportunity.
Since the transition, the firm has distributed bonuses to eligible staff, reinforcing the benefits of collective success and deepening staff engagement.
The Impact of Employee Ownership
The results have been significant. Ison Harrison has continued to exceed expectations in turnover and profitability. More importantly, employee ownership has created a stronger sense of belonging and purpose. Staff are more engaged, clients value the transparency and shared ethos, and the firm’s culture is stronger than ever.
A Blueprint for Forward-Thinking Firms
At Ison Harrison, we don’t just talk about employee ownership—we’ve lived it.
As a fully employee-owned law firm, we understand the process inside out. From structuring the trust and obtaining regulatory approvals to navigating the legal and emotional complexities of succession planning, we’re uniquely positioned to guide business owners through every stage of the transition.
If you would like to discuss this further, please contact our Director and Head of Corporate & Commercial, Richard Coulthard on 0113 284 5095 or via email at richard.coulthard@isonharrison.co.uk Richard was directly involved in the implementation of the Ison Harrison EOT Scheme and can talk personally about the process and practical considerations.
