WASHINGTON – In a recent op-ed in the Portland Tribune, Bob’s Red Mill CEO Trey Winthrop explains why employee stock ownership plans – known as ESOPs – could be the key for helping businesses attract and retain workers in a tight labor market.
“While many employers are finding it tough to recruit and retain employees, one group of businesses is faring much better than the rest: Businesses who offer their employees the opportunity to take an ownership interest in the company,” Winthrop writes.
Winthrop pointed to a recent study from the National Center for Employee Ownership (NCEO) that found employee-owned businesses in the food industry “were less likely to lay off employees and were much less likely to reduce contributions to benefit plans.”
Winthrop also noted how much better employee-owners fared in retirement, citing a recent study by Ernst & Young that found “employee-ownership plans outperformed the S&P 500 by one-third over the past 20 years.” Like most companies that offer ESOPs, Bob’s Red Mill also provides its employee-owners with the option to contribute to a 401(k), “meaning that employee-owners will have the benefit of at least two sources of retirement income when they retire.”
“At Bob’s Red Mill, we are proud to be 100% employee-owned, ensuring the full value of our hard work and success is shared among our employee-owners,” said Winthrop about Bob’s Red Mill’s commitment to its employee-owners.
Winthrop noted Congress can do more to “make this ownership model available to more businesses” by passing legislation that “would provide incentives for employee ownership, as well as much-needed technical assistance for those companies that are interested in forming an ESOP.”
To read Trey Winthrop’s full op-ed in the Portland Tribune, CLICK HERE.
To learn more about the Employee-Owned S Corporations of America (ESCA), CLICK HERE.