Learn About Working for an ESOP
Wouldn’t being an owner of a company inspire you to work hard to make it a success? This motivation is one of the driving forces behind companies opting for employee ownership.
There are several ways to accomplish employee ownership. Employees can buy stock directly, receive stock options, or through a profit sharing plan. Stocks can even be given as bonuses. But by far the most common form of employee ownership in the U.S. is the ESOP, or employee stock ownership plan.
ESOPs give the employees an ownership interest in the company. In an ESOP, companies offer their workers a stock ownership, often at no upfront cost. The National Center for Employee Ownership (NCEO) estimates that roughly 7,000 ESOPs were in existence in 2015. ESOP companies grow more than two percent faster after setting up their ESOP than would have been expected without it. Companies that combine employee ownership with employee recognition programs show an even stronger boost in performance.
ESOPs have some pretty substantial tax benefits. Dividends, stock and cash contributions are tax-deductible, and employees pay no tax on the ESOP contributions. However, there is more benefit to an ESOP than just financial gain.
Employees invest more than money into an ESOP; they invest their sense of pride. Doing a good job doesn’t just impact some suits in an office that they’ve never seen. Their ownership raises the stakes, inspiring and motivating them to work harder.
Both temporary and permanent employees at an ESOP collaborate together better. The sense of team is truly significant when your colleagues are your co-owners. Everyone benefits from working for the greater good. When the employee-owners are allowed a voice in the decision-making process, an ESOP can build stronger, more robust and more creative teams. This style of ownership also improves retention, as it encourages employees to stick around for the long term.
The employees at Burnett Specialists and Choice Specialists know a little something about ESOPs. As the largest employee-owned staffing and placement firm in Texas (and it’s a big state), we experience the benefits of this system every day. Those benefits trickle down to our clients. When you work with an elite recruiter at Burnett Specialists or Choice Specialists, you’re also working with a business owner. Many of our temporary employees are also owners and invested in our staffing agency (see details).
As an employee-owner firm, we are committed to a level of service other Texas staffing agencies just can’t equal. Burnett Specialists and Choice Specialists are a source for staffing and direct hire placements. Our highly qualified talent pool is specialized in accounting, administrative, convention support, engineering, HR, IT, legal, light industrial, management, manufacturing, medical admin, financial, marketing, supply chain, and call center. Give us a call today and we’ll get started on a strategy to address your career or staffing needs.