5 Reasons to Work for an Employee-Owned Company (ESOP)
A company’s employee stock ownership plan, or ESOP, provides its employees with an ownership interest in the company. Check out our top 5 reasons why you should work for an ESOP, like Hoffman & Hoffman!
- Training & Advancement Opportunities
ESOPs want to invest in their employees because their employees invest in them. According to research funded by the Employee Ownership Foundation, companies with employee stock ownership are 1.3 times more likely to provide employee training than conventionally owned ones.
- Every Employee is an Owner, so You Work with Equally Dedicated People
Each member of your team has something to gain from a job well done, so you can expect them to work hard for you, the company, and themselves! It is amazing to see coworkers working together toward a common goal of company success.
- Better Retirement Savings
ESOPs are very similar to 401(k)s, with one major difference: employees do not contribute their own funds to the retirement plan. Instead, employer contributions are made, and employees accumulate those funds over time. ESOP participants have approximately 2.2 times as much in their retirement savings accounts as participants in comparable non-ESOP companies.
- Job Security
In difficult economic times, employees of private and publicly held companies are much more likely to be laid off than ESOP employees. Some of the factors behind this include employers having to pay out employees at termination and a stronger company culture that helps the company endure tough times. A 2000 Rutgers study found that ESOP companies grow 2.3% to 2.4% faster after setting up their ESOP.
- Greater Job Satisfaction
An employee of an ESOP has a personal interest in seeing that their work benefits the company, which also results in greater job satisfaction. Overall, companies with employee ownership often see greater productivity, higher profitability, and increased revenue. These successes also tend to continue over time, as the motivation of employees continues as long as they have an interest in the overall health of the company.
At Hoffman & Hoffman, we invest in our employees, and we want to help you reach your career goals. Our ESOP can help you build a foundation for your future and provide you with purpose in your career. Are you looking for a change in your current career? Does our ESOP seem like a good fit? Learn about our current job openings at H&H below.