The Benefits of Working with an Employee-Owned Company
Choosing a company to do business with, especially in the construction-related trades, can be a difficult decision. Besides evaluating reviews, pricing, employee size, etc., there is one key factor that rises above the rest. Will you be doing business with the owner? In most cases the answer will be no. However, if you’re able to find a company with an ESOP (Employee Stock Ownership Plan) that’s exactly who you’ll be working with. It’s who you’ll be talking with whenever you call to discuss your job. It’s every project manager or tradesman who shows up to do the work, every secretary, supervisor, or helper who assists in making things happen. Below are some of the many benefits you’ll find when working with an employee-owned company.
- Commitment to Quality and Character: ESOP participants typically have a strong commitment to the success and long-term stability of their company. This commitment often translates into a focus on delivering high-quality service to customers. As an example of how important this concept is MB HAYNES developed its tagline of Quality, Commitment, and Character to incorporate these keywords.
- Stability and Reliability: ESOP-owned companies are often more stable and less susceptible to sudden changes in leadership or ownership, providing customers with a sense of security and reliability.
- Ethical and Social Responsibility: Many ESOP-owned companies prioritize ethical and socially responsible business practices, which can align with the values of customers who want to support businesses that share their principles.
- Employee Expertise and Dedication: Employees at ESOP-owned companies tend to be more engaged and dedicated to their work, as they have a direct financial stake in the company’s performance. This can result in better customer service and a higher level of expertise in the industry.
- Long-Term Perspective: ESOP-owned businesses are often focused on sustainability and long-term success rather than short-term profits. This can lead to a more stable and reliable relationship with customers.
- Customer-Centric Approach: ESOP companies may prioritize customer satisfaction and loyalty as they understand the importance of building and maintaining strong, lasting customer relationships.
- Local and Community Benefits: Many ESOP-owned businesses are deeply rooted in their communities, and customers may feel a stronger connection to a business that invests in the local economy and supports community initiatives.
- Transparency and Accountability: ESOPs often promote a culture of transparency and accountability, which can benefit customers by ensuring that the company’s actions align with their interests and values.
- Innovation and Creativity: Employee ownership can encourage a culture of innovation and creative problem-solving, which can lead to the development of innovative products or services that cater to customer needs.
- Competitive Pricing: ESOP-owned businesses may offer competitive pricing due to their focus on efficiency and profitability, which can benefit customers seeking value for their money.
- Employee-Driven Customer Insights: Employees who have a direct stake in the company’s success often have valuable insights into customer preferences and needs, which can result in better-tailored products and services.
While there are numerous benefits to engaging with ESOP-owned businesses, it’s still essential for customers to assess each business on a case-by-case basis. As with any business relationship, it’s vital to do your research and make an informed decision based on your individual needs and priorities.
Interesting Facts About ESOPS:
- There are roughly 10 in Western North Carolina, 3 in the Hickory/Morganton area, 1 in Gastonia and about 23 in the Charlotte area.
- As of 2023 the National Center for Employee Ownership (NCEO) estimates there are approximately 6,500 employee stock ownership plans covering almost 14 million participants.
- MB HAYNES began its ESOP at 32% in 2012 and became a 100% ESOP in 2015.