It’s Our Company
10/24/17 | 8:00AM | Posted by TEAM Software
CATEGORIES: Owners' Manual
The employee owner difference.
Imagine you’re at a job that you dread going to every day. You’re in the career field of your dreams, but you just can’t seem to find your groove. You set out to find a better fit and you come across two companies that you want to work for. Both companies offer:
- Comparable benefits and perks.
- Similar job duties and professional development opportunities.
- A connection personally or professionally (i.e. you could see yourself working here).
How do you decided which offer to accept? Would it make a difference if one of the companies was employee owned?
Similarly, what if you’re a company looking for a better software solution to run your business? Factors like price, functionality and customer support might be factors in your decision, but would a company that’s employee owned stand out?
If you’re looking for a job that’s more than just a paycheck, or a company where you’ll be more than an account number, employee ownership can make a big difference. Here’s a few reasons why.
You make a difference.
Employee owners are far more engaged because they own a piece of the company. When you have “skin in the game,” you typically work harder and are more dedicated because you can see the impact your work makes to the bottom line and to the customer experience. According to a survey from the Employee Ownership Foundation released in 2014, 76 percent of respondents said an employee stock ownership plan (ESOP) positively affected overall productivity and 70 percent saw an increase in revenue.
And, back to that “more than a paycheck” mentality. As an engaged employee owner, your work contributes to the greater success of the company. Instead of only working to advance your career, you can see how your work fits into the long-term strategic plan because you know what it is. You have a greater understanding of the goals and direction of the company through increased transparency and collaboration. You may not always have the final vote on business decisions, but you have a seat and a voice at the table.
You’re far less likely to be without a job working at an employee owned company. That’s a pretty bold statement, but the numbers don’t lie. According to information from a 2015 General Social Survey (GSS), 1.3 percent of employee owners responded that they were laid off in the last year compared to 9.5 percent for employees working at non-employee-owned companies. And less turnover means you have a continued focus on your work and expertise in your company.
Retirement made easy.
An Employee Stock Ownership Plan (ESOP) is a unique retirement benefit. Unlike a 401(k), an ESOP is funded by contributions made by the employer, not the employee. A study from the National Center for Employee Ownership (NCEO) found on average, employee-owned companies contribute over 75 percent more to the ESOP than non-employee-owned companies contribute to their retirement plans. And, nearly 56 percent of employee-owned companies offer a second retirement program such as a 401(k) in addition to the ESOP. Talk about setting you up for a comfortable retirement!
Employee ownership connects employees on a personal level, as well as professionally. But employee ownership is also good for the customer. Why? Customer service expert Shep Heyken says it best, “To be the best place to buy, you have to be the best place to work.” Engaged and happy employees will always serve the customer better. And at TEAM Software, we count on employee ownership to create the kind of environment where motivated, talented employees thrive.