Three Reasons Why Working for an ESOP is Awesome!
You may be wondering, What is an ESOP? An ESOP, or employee stock ownership plan, is an employee-owner agreement that provides a company’s workforce with an ownership interest in the company.
ESOPs operate via a trust that holds shares for employees. ESOPs are subject to strict rules to ensure the ownership stakes are equitably divided among employees. In return, companies and their owners receive tax incentives.
According to the National Center for Employee Ownership (NCEO), there are now approximately 6,600 ESOPs with more than 14 million participants in the U.S. Among these companies are brands such as Publix Super Markets (200,000 employees), Amsted Industries (18,000 employees), and W.L. Gore and Associates (maker of Gore-Tex, 10,720 employees). It is notable that companies with ESOPs and other employee ownership plans account for more than half of Fortune’s “100 Best Companies to Work for in America” each year.
What makes an ESOP company so awesome to work for? It is that these companies have a vested interest in their individual employees.
- Employee Share Of Profits
Data taken from a recent Bureau of Labor Statistics’ (BLS) National Longitudinal Survey of millennials reveal that employee-owners in this dataset have 33 percent higher median wage income at all earning levels. Further, median household net wealth among respondents is 92 percent higher for employee-owners than for non-employee-owners, including single women, parents raising young children, non-college graduates and workers of color.
The work you do with an ESOP directly impacts your future and retirement. The longer you stay with the company, the more vested you are, and the more value accrues in your ESOP account. An ESOP helps set you up for a strong financial future.
- Employee Stability Of Position
The same BLS study shows that employee-owners in this dataset have substantially more job stability than non-employee-owners. Median tenure with their current employer is 5.2 years, compared to 3.4 years for non-employee-owners.
- Employee Sense Of Purpose
The people who work for an ESOP are united by a sense of purpose. Since everyone is an owner, everyone has something to gain from a job well done.
ESOPs offer unique benefits and invest in their employees because their employees invest in them. These perks include more training and opportunities for advancement. The BLS study further demonstrates that employee-owners are more likely to have access to flexible work schedules, retirement plans, parental leave and tuition reimbursement. By way of example, 23 percent of employee-owners have access to childcare benefits, compared with 5 percent of non-employee-owners.
20/20 Plumbing & Heating, Inc. is proud to be an ESOP company. We regularly invest in our employees and want to help them reach their career goals. Our ESOP can help you find passion in your work while building a foundation for your future.
We are committed to delivering value to both customers and employees, and we have been strategic in creating an ESOP that ensures a long and healthy company legacy. At 20/20, we believe that pride of ownership is what sets us apart as one of the region’s premier plumbing and HVAC contractors.
Are you ready to be part of something awesome? Visit our Careers page and become part of the 20/20 team! https://www.2020ph.com/careers/