As an ESOP company, you know that an ESOP is more than just a way of divvying up business shares; it’s a significant component of the company culture and mindset. It’s also a factor in how businesses operate.
Because of that owner mentality, employees feel a personal responsibility for the success of all business operations. As a result, this mindset can significantly benefit the customers, clients and companies that work with an ESOP.
We’re proud to say that GO2 Partners is an employee-owned company, and the ESOP culture we’ve built here has been a major factor in our success.
Power and benefits come with working with an ESOP, benefits that smart companies should recognize.
Additional ESOP benefits include:
Increased Employee Motivation
For all practical purposes, every employee sees additional benefits from the company's success. The employee isn’t seeing their hard work line the company owner’s pocket; instead, that hard work rewards them.ƒ
Succeeding for a customer is sweeter and a little more meaningful. All share in the company’s success, so you’re willing to do everything possible for fellow employee-owners. You work harder, try more, operate with an entrepreneurial mindset, look for improvement and give more when possible. Furthermore, being surrounded by other employee-owners with that same mindset increases employee motivation.
Greater Employee Engagement
Since ESOP employees hold shares in the company, they have a deeper connection to it and are more likely to contribute to its success. In fact, productivity improves by 52% amogst employee-owners compared to others, according to a GAO study.
When employees understand that their financial interests are connected to the company’s performance, they are more willing to participate in discussions and pitch ideas that will help the company grow and the clients to succeed. In addition, an ESOP greatly improves employee retention since 91% of ESOP workers feel they can live more comfortably in retirement compared to non-ESOP retirees.
ESOP employees are also more likely to feel accountable for their work performance. They are more likely to tackle challenges and focus on the needs of the client.
Excellent Customer Service
Higher employee satisfaction means higher client satisfaction. With the financial incentive, ESOP employees will be more motivated to extend themselves to better serve the customer. ESOP employee-owners are more resolved to solve problems and provide answers quickly. This creativity and accelerated service mean quick resolutions for the client.
Since ESOP employees are more likely to stay at the company, customers will see the benefits of a stable company with fewer changes. As a result, customers will receive greater attention, and employee-owners will understand their company's services and products. Furthermore, customers will benefit from the expertise and experience of a more experienced staff.
Greater Expertise
As mentioned earlier, ESOPs attract and keep talent. As a result, these companies consist of tenured employees with specialized knowledge and skills about the product, service, and industry. This knowledge can help you gain a competitive advantage in the market.
These more experienced employees have grown with the company and know their field well. They’ve had first-hand experience with previous products, services and systems. When a returning customer wants a product that is no longer available, a tenured employee can suggest an offering that would satisfy the customer.
Over time, these employees build relationships with the clients and become familiar with their needs and how they prefer to communicate. These relationships will help you to feel more comfortable asking for assistance and have greater trust in the company.
Stable Company Ownership and Relations
Over time, businesses will change. Whether it’s due to a change in ownership, how business is conducted or major strategy shifts, if you do business with a company long enough, you will be impacted by change.
Businesses and customers that work with an ESOP see fewer changes and more stability. An ESOP typically has a much stronger company culture that can weather and mitigate change. The transition of management in the ESOP is typically seamless, as the employee-owners have a vested interest in company leadership. In an ESOP, owners can sell their shares to employees gradually and ease the transfer of ownership, ensuring continuity and preserving the company’s culture.
Even the business strategy adopted by the ESOP will reflect the employee-owner mindset. As a result, there will be less disruption to how business is conducted and how client work is handled, despite changes.
Working with an ESOP
As an ESOP company, GO2 Partners is a business-to-business agency focusing on marketing, operations and managed services. We attract and retain top talent to deliver exceptional results for our customers.
Finding, recruiting, and keeping that talent is easier as an ESOP. Our employees feel personally invested in the success of GO2 and want the clients to succeed as well. Our organization is dedicated to enhancing your brand and improving your bottom line.
If you haven’t worked with an ESOP before or want to see what the difference is like, then contact us today. Let us know how we can help you reach your goals.
