Are You Struggling With Engaging and Retaining Your Employees Through Your ESOP?

Posted by Jason Wellman on Thu, Jun 14, 2018
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Engaging Employees Currently, the job market is experiencing record low unemployment, so retention is KEY. A recent Gallup Poll showcases the current landscape for employees in terms of their level of engagement for an employer.

  • 32.5% of employees are engaged
  • 51.8% of employees are not engaged
  • 15.7% of employees are actively disengaged

Recommendations to Improve Engagement and Retention

  • Management and Leadership - 50% of all voluntary turnover is due to poor management. Some studies (such as one by SHRM) predict that every time a business replaces a salaried employee, it costs six to nine months’ salary on average. Focus on ways to improve and develop your company’s leadership team by having a clear internal communication strategy that is executed transparently.
  • Meaningful work - This point was the third most important factor for employee engagement by 76% of the respondents to SHRM’s 2016 Employee Job Satisfaction and Engagement Report. Engage employees with meaningful work or watch your employees walk out the door.
  • Relationships with co-workers - According to a statement from a Gallup Q12 survey, when you have a close friend at work, you feel a stronger connection to the company and you’re more excited about coming to work every day.

Ways to Incorporate Your ESOP

  • Consider a formal mentor program by pairing up a tenured and seasoned employee with a newer and younger employee for some one-on-one mentoring.
  • Develop younger ESOP Committee members with the help of board members to improve each committee member’s overall understanding of the ESOP.
  • Celebrate each stage within the career life cycle of an ESOP participant.
  • Share the unique, non-traditional benefits associated with working for an employee-owned company during the interview & application, onboarding, and the employee’s annual review process.
  • Recognize employee-owners that are making a difference within the organization.

Increased productivity, higher job growth, 2 ½ times greater wealth in their retirement accounts, and 5% - 12% more in wages are just a few benefits to help engage and retain employees through an ESOP.

Culture and Communications Self Assessment

Topics: ESOP, Communications and Culture, Human Resources

Jason Wellman
Written by Jason Wellman

Jason, a Senior Relationship Consultant, helps employee-owned companies by developing a comprehensive Ownership Culture through proactive educational resources for all participants to improve their understanding of this unique, nontraditional benefit we call an ESOP.

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