WASHINGTON – At Forbes, Mary Josephs of Verit Advisors examines why companies with “employee-stock ownership plans (ESOPs) enjoy an advantage over non-ESOPs in recruiting and retaining talent” and points to a growing body of research that demonstrates ESOPs “can offer enormous value to both employees and the companies that establish them.”
“Study after study finds that employee ownership generally makes a genuine difference in hiring and retaining talent, an advantage that has been critical during the Great Resignation that erupted during the coronavirus pandemic,” Josephs writes. “Moreover, research by John Zogby Strategies on behalf of Employee-Owned S Corporations of America, found that employees at S Corporation ESOPs experienced fewer financial setbacks and perceived greater financial security during the pandemic than did employees of non-ESOPs.”
Meanwhile, a new analysis – conducted by Ernst & Young (EY) on behalf of ESCA – finds that employee-owners of privately held businesses called “S corporations” (S ESOPs) benefit from far better retirement savings and job security compared with other U.S. workers.
And a study released earlier this year by ESCA and the National Center for Employee Ownership (NCEO) found that employee ownership of private businesses through employee stock ownership plans (ESOPs) provided exceptional resiliency and financial security in the face of pandemic-driven economic challenges. In reporting on the study, NBC News noted that while record numbers of Americans have quit their jobs in what has been dubbed the “Great Resignation,” workers at employee-owned private businesses are “staying put and reaping rewards” in a sharp contrast with the “deep disaffection among workers” at many traditional companies.
- To read Mary Josephs’ full piece at Forbes, CLICK HERE.
- To learn more about the Employee-Owned S Corporations of America (ESCA), CLICK HERE.