Every company has its own unique “secret sauce” that makes it an exceptional place to work. Immel Construction is proud to be part of over 220 Wisconsin-based companies that incorporate employee ownership as a key ingredient. Through an Employee Stock Ownership Plan (“ESOP”), employee ownership adds a distinct advantage, enhancing the benefits package, fostering a positive workplace culture and strengthening the company’s long-term vision.
The following ideas highlight some of the many ways your company can take advantage of its employee ownership, aimed at attracting new talent, retaining current employees and rewarding staff.
Attracting New Talent
1. Showcase Economic Benefits:
- Share testimonials from employees who have benefited from the ESOP, offering tangible proof of its positive impact.
- Emphasize the opportunity for employees to build long-term wealth through company shares. Remember, this is a marathon [benefit], not a sprint [benefit]!
2. Promote an Ownership Culture:
Highlight how employee ownership fosters teamwork and alignment toward long-term success.
- Employees are more likely to stay with an organization when they feel connected to its mission. Illustrate how employee ownership encourages transparency, stronger communication, and decision making, and can align personal goals with company objectives.
- A sense of ownership can inspire employees to go above and beyond, invest in their own growth path and advance their careers.
3. Create an Employee-Ownership Value Proposition:
- Consider adding an “Employee Ownership” page to your company’s website to educate both potential employees and customers about the stake employees have in the company’s growth and success.
Retaining Talent
1. Focus on ESOP Education and Awareness:
- ESOPs can be an intimidating benefit. Educate employees regularly, breaking down the details in manageable pieces so they understand the future benefit for themselves and their families.
- Use social media to create short, engaging videos/posts explaining the benefits of employee ownership.
- Ensure employees understand the vesting schedule for their ESOP shares. This can be a powerful motivator to stay long-term as they work toward full ownership.
2. Emphasize Total Compensation Over Salary:
- While employees tend to focus on base salary, an ESOP can play a significant role in the total compensation package. Highlight how employee ownership enhances their long-term financial security, especially if they stay with the company over time.
- Offer financial planning, consultation and/or wellness resources.
Rewarding Staff
1. Celebrate Key Milestones:
- Participants in the plan can receive significant benefits at the time of retirement, so make the day special for the retiree!
- Celebrate when an employee becomes fully vested in the ESOP. Perhaps it is a company-wide announcement, plaque or even an actual vest with a special ‘fully vested employee owner’ logo on it. Take it a step further by asking employees to help create the logo!
2. Bonuses and Profit Sharing:
- Payments made to the ESOP are tax deductible. Over time, this can increase cash flow and provide an accelerated reduction of debt and greater capital investment. It also allows the ability to reward with bonuses or additional profit-sharing plans in addition to their ESOP benefits.
Conclusion
Building and nurturing an employee-ownership culture that fosters a strong sense of responsibility and pride in the company’s success benefits both employers and employees. The key is to ensure that employee-owners fully grasp the long-term value of their stake in the company and feel supported as they grow and develop as people and professionals.
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of Insight Publications, a division of Woodward Communications, Inc.
