WASHINGTON – In case you missed it, CEOWORLD Magazine writes that employee ownership “may very well be the wave of the future.”
“Employee-owned means the employees own shares in the business so that when the company wins, everybody wins. Traditionally, these entities see greater productivity, higher profitability, increased revenue, and better employee retention,” the magazine explains.
“Moreover, it helps workers take ownership of the company’s success and, as a result, build their personal financial foundation. A recent study by John Zogby Strategies [on behalf of the Employee-Owned S Corporations of America (ESCA)] found that people who worked at employee-owned S corps fared dramatically better financially than those working for non-ESOP corporations,” they add.
On behalf of ESCA, Zogby surveyed a sample of mid- and lower-level employees at employee-owned private companies and a sample of other non-ESOP employees, and “found a world of difference between the two groups” in key measures, including:
- Non-ESOP employees reported experiencing job losses or downsizing at six times the rate of their peers at employee-owned companies.
- Non-ESOP workers have been adversely affected by the pandemic economy at more than three times the rate of employees at ESOP companies.
- Twice as many non-ESOP respondents as ESOP respondents are concerned about their ability to pay down debt.
- Three times as many ESOP employees say they are able to cover an emergency $500 expense, compared with their non-ESOP counterparts.
- Twice as many ESOP workers expect to retire by the age of 60 compared with workers at non-ESOP companies.
- No ESOP respondents reported being behind on their rent or mortgage, compared to more than 25 percent of their non-ESOP peers.
The findings support decades of research showing that working for a private ESOP company helps American workers be better equipped to weather financial challenges or economic downturns, and that ESOP companies tend to weather economic storms better than other businesses.