Employee-owned companies seem to be popping up all over the place these days. That status of being employee-owned is being used as a recruitment tool and many workers are finding it to be a pretty attractive option. But what does “employee-owned” mean?
Here’s Five Fast Facts about Employee-Owned Companies:
- 🧑💼 What It Is - Employee ownership is when a company’s workers own shares of company stock. When the company grows, the employees benefit. They’re a big deal — roughly nine million employees participate in ownership plans!
- 🦫 Sharing is Caring - There are three different forms: Employee Stock Ownership Plans (ESOP), Equity Compensation Plans, and Worker Cooperatives.
- 🧟 Unlimited Power? - Before you go and try to fire that psycho Eric in Customer Service, understand that it doesn’t mean you get a say in the company’s direction. Most ESOPs give voting rights to a trustee. Worker cooperatives are the only democratically-controlled companies.
- 👩💻 Benefits! - Employee-owned companies see increased levels of employee engagement, better productivity and bigger profits. ESOP contributions are tax deductible and employees can even defer their tax contributions until they start getting money during retirement!
- 👔 Take the Money and Run - You don’t always have a stake in the place, though. Your ownership role ends when you quit. The stock you own is sold and you receive the profits, depending on your investment.
🔥Bottom line: Companies with happy and productive employees? Companies who want their employees to succeed? In America? Crazy, right? And not “Black Mirror Episode” crazy, either. Places like this exist and according to the numbers, they may not be too difficult to find if you know where to look.
Do you know anyone who works for an employee-owned company? Is that guy Eric really a psycho?
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