20/20 Plumbing & Heating — Proud to Be an Employee-Owned Company
An employee stock ownership plan (ESOP) is an employee benefit plan that gives workers ownership interest in a company. 20/20 Plumbing & Heating, Inc. is a thriving ESOP, where employee ownership drives a culture of uncompromising customer service and self-sustaining profitability.
In a 2019 nationwide survey, funded by the Employee Ownership Foundation and conducted by the Institute for the Study of Employee Ownership and Profit Sharing at Rutgers University, 72 percent of respondents said they would prefer to work for a company owned by the employees. The study also found that “turnover at employee-owned companies is three times lower than at conventionally owned businesses.”
The exceptional workplace culture at employee-owned companies gives those businesses an edge in attracting and retaining quality employees, especially millennials. The same Rutgers University study reported that “employee-owned companies provide training at a rate 1.3 times that of conventionally owned businesses.” With their consistent investment in employee growth and development, ESOPs ensure that employees not only have the skills to do their jobs well, but also to advance within the organization. Such investment in training is also important to an organization’s longterm stability and succession management strategy.
After the last recession, some construction-related ESOPs failed due to poor structure and capitalization. However, Forbes reported that ESOPs are actually “more resilient in difficult economic environments” due, in part, to the “presence of engaged and committed employees.” Many studies show that ESOPs enjoy “higher productivity, lower worker turnover, an abundance of money-saving ideas from the rank-and-file, and less friction between management and workers.” Together, these factors make ESOPs more secure and profitable than similar companies operating with different ownership formats.
To the point, a 2010 study by the McDonough School of Business at Georgetown University demonstrated that during the recession year 2008, S-Corporation ESOPs were adding employees and enjoyed double-digit revenue growth, while comparable companies were slashing payroll and experiencing declining sales.
Our ESOP Strategy
Committed to delivering value to both customers and employees, 20/20 has been strategic in creating an ESOP that ensures a long and healthy company legacy. In contrast with other construction-related ESOPs, 20/20 has done the following:
- Initiated ESOP based upon careful observation of 50 years of construction cycles
- Expanded business within its means, without borrowing from a bank
- Hired an independent trustee who takes a larger role in representing employees’ interests
- Employed the expertise of both internal and external board members for strategic leadership
At 20/20, our employees act like owners, and we believe that pride of ownership is what sets us apart as one of the region’s premier plumbing and HVAC contractors.