An employee stock ownership plan (ESOP) allows employees to own a part or all of the company they work for by buying shares of the corporate stock. Essentially, an ESOP is a qualified retirement plan.
By allowing employees to own company shares, an ESOP company provides its workers a direct path to benefit from the company’s financial success. For employees, working for an ESOP company is euphoric. And for company owners seeking a smooth ownership transition, ESOPs are a perfect succession planning vehicle.
But how does an ESOP company like Crescent Industries benefit you, the customer? Here’s how.
Naturally, ESOP companies have better employee retention rates. Data from the General Social Survey (GSS) analyzed by The ESOP Association shows that ESOP companies are 235% better at worker retention than non-employee-owned companies.1 This means ESOP companies enjoy higher talent retention rates, which translates to better and more consistent service delivery.
Talent retention is critical to sustaining and improving workers’ skill levels, especially in technical crafts such as plastic injection molding. The better employees get at their jobs, the better quality they deliver. When you hire an ESOP company, you continually enjoy quality service and products more than you would at other companies with a high turnover rate.
When employees own equity in their company’s commercial success directly impacts their personal finances. As a result, each worker is inclined to support and contribute to the company’s overall success. And this starts with being accountable for their job roles.
ESOP workers have the latitude to address challenges at their level, innovate solutions, and own the success or failure of their solutions. This way, your business benefits from the agile solutions necessary to navigate everyday business complexities.
To forge a productive and long-lasting business relationship, the parties involved must invest considerable time and resources to achieve stark integration. However, it’s already hard enough to find a professional with the same dedication and commitment to your business as you have, let alone one that’ll stick with your company for the long term.
But fret not. You can enjoy these perks when you partner with an ESOP company, as most ESOP employees work with their company until they retire and cash out. This means there is a good chance that many team members will be around for your entire product lifecycle if you retain one ESOP company for the long term.
Workers familiar with your company’s scope of work are more efficient and productive. Further, they can help you ideate solutions more rapidly when facing process inefficiencies. Knowing you have a dedicated professional who knows your business inside and out gives you enough confidence to meet business challenges in stride.
For instance, if you trust Crescent Industries with your plastic injection molding project, we’ll assign a dedicated team of professionals with years of experience to take your plastic product from design to completion.
ESOP companies allow their employees to hold a stake in the corporate stock and benefit from the company's financial success. And because employees directly impact the company and their success, they work harder and more passionately toward the company’s goals.
When their hard work translates to financial success, ESOP employees get their fair share. In the long term, ESOP workers end up in better financial positions, whether it’s more stock ownership or a sizable retirement nest egg.
Even the U.S. government recently retaliated its support for ESOP companies by passing a six-bill package championing employee ownership in America. By partnering with an ESOP company, you’re contributing to this greater course and ensuring that more American workers secure their financial future.
Crescent Industries is not only the leader in plastic injection molding but also a pioneer in ESOP. For over two decades, we have experienced firsthand the benefits of an employee stock ownership plan, as our share price has nearly tripled since we became an ESOP in 1997.
Thanks to our early adoption of ESOP, we are one of the most experienced injection molding companies serving the medical, pharmaceutical, dental, defense, and OEM/Industrial Markets.
Contact us today and let us know your injection molding needs.
Sources
https://www.esopassociation.org/articles/eo-firms-dramatically-better-retention
https://www.esopassociation.org/articles/congress-takes-concrete-steps-support-employee-ownership