The landscape in today’s job market for hiring companies is difficult, especially with the unemployment rate at 4.1% for the past three months, according to the Bureau of Labor Statistics. Unemployment rates are at the lowest since 2000. Employers continue to need top talent to grow operations. This was evident with December’s jobs report indicating, once again, that we added jobs, another 148,000 to be exact. Companies have added 2.1 million employees in 2017 and 2.2 million employees in 2016, so it doesn’t appear to be slowing down anytime soon.
As an employee owned company, you have something special that will help set you apart from the competition when pursuing your next new hire. Employee owned companies not only offer their employees an additional retirement benefit through the ESOP trust, but often also have another retirement benefit like a 401k and/or profit sharing (NCEO 2010). Studies have shown that employees at ESOP companies have approximately 2.5 times greater wealth at retirement compared to employees not working at an ESOP Company (Rutgers 2000). Another fact that should be mentioned to potential new hires is the average employee owned company pays about 5% to 12% higher in wages compared to a same size and industry company (Washington State 1997). These facts are very attractive to individuals seeking a new career opportunity.
So, if you’re an employee owned company or considering becoming an employee owned company, you have some major advantages in recruiting over non-employee owned companies when it comes to the selling points of generating wealth for retirement and potentially earning more up front due to the unique non-traditional benefits associated with being an employee owned company.