ESOPs Increase Employee Engagement
Business owners know the great value of employees who act, think and behave like an owner. There’s one guaranteed trick to encouraging employees to feel this kind of responsibility and loyalty in their work – make them owners!
An ESOP (employee stock ownership plan) provides the workforce with stock ownership in the company, often at no up-front cost to the employees. When a business promotes employee ownership, both the company and its employee feel the benefits every day.
According to Business Council of Cooperatives and Mutuals, approximately 10,000 ESOPs operate in the U.S., with more than 10 million employees, which make up roughly 10 percent of the workers in the private sector. A 2013 survey conducted by the Employee Ownership Foundation revealed that 94 percent of respondents reported that creating an ESOP was a positive decision that improved the company. Other benefits of an ESOP include:
Stronger sense of responsibility: ESOP advisory committees give employees responsibilities as owners.
Boost in overall productivity: If the company is more successful then the business is more successful. Employees understand that their hard work makes a stronger business and a stronger business improves their pay and benefits.
Meaningful work: Studies show the millennial generation has a strong desire for a career at a place where they can really make a difference. When they have ownership in the company, workers prioritize the job.
More attractive to candidates: If you want to attract the top performers in your field, giving them an ownership in the company is just the added benefit you need to give you the recruitment edge.
Dedication and trust: Working harder makes an ESOP more valuable, so employees are more likely to reap long-term rewards. Because they feel more secure in their jobs and stronger satisfaction in their work, they trust more deeply in the firm and management.
ESOPs may not be the right path for every business, the numerous benefits make it a strong option for companies looking to improve productivity, morale and community. These benefits are felt by all company stakeholders. If you’ve been thinking about ways to improve your employees’ job satisfaction, while also improving your bottom line, give Burnett Specialists and Choice Specialists a call. As the largest ESOP in Texas, we have created proven solutions for a variety of workforce staffing challenges. Give us a call today.
