Selling to an ESOP Provides Employment Stability & Increases Job Satisfaction

Posted by Mike Young on Thu, Sep 07, 2017
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job satisfaction.jpgWe have been discussing the benefits of selling to an ESOP.  A review of existing research on ESOPs found that ESOP companies have greater employment stability. The studies found that the average employee tenure was "significantly longer" than their non-ESOP counterparts and that firms were more likely to adjust wages than the number of employees. It also found a mild increase in "job satisfaction, organizational commitment, identification, motivation, and workplace participation.” 

Other studies have found that ESOPs increase employee wealth and wagesESOP companies provide more sustainable employmentS Corporation ESOP companies are more stable, provide increased job satisfaction, and have higher organizational commitment, and that employee ownership increases job satisfaction, innovation, and productivity.

The National Center for Employee Ownership has just released results from the first phase of an ongoing research project that compares the economic well-being of employee-owners early in their careers with that of other young workers. The findings, based on data collected by the Bureau of Labor Statistics, are remarkable.

Employee ownership has great potential to stabilize employment, to root productive capital in communities, and to increase the assets and incomes of working families.

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Topics: Selling to an ESOP, Business Exit Strategy

Mike Young
Written by Mike Young

Mike is a Senior Business Consultant with ESOP Partners and has more than 20 years of experience delivering business solutions to a variety of industries.

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