One attractive benefit of an ESOP is how employee ownership empowers employees to actively participate in furthering the success of the company. ESOP committees provide opportunities for you to make meaningful contributions and help your colleagues truly take ownership of their futures.
ESOP Committees: What They Are, What They Do
ESOP committees are simply two organized groups of employee-owners who volunteer to oversee the administration and communication of the ESOP.
The two employee engagement committees serve different but complementary roles within the ESOP company.
ESOP Administrative Committee
An ESOP Administrative Committee focuses on the technical and legal aspects of running the ESOP. Members are responsible for:
- Ensuring proper administration of all aspects of the plan, including participant enrollment, allocations, and distributions
- Verifying compliance with regulatory and legal requirements
- Interpreting plan provisions and applying rules for plan operation
- Vetting, hiring, and managing plan administrators and any service providers
- Decision-making on plan design, application, and amendments
- Directing the ESOP trustee on plan decisions
ESOP Communication Committee
An ESOP Communication Committee focuses on fostering and expanding an ownership culture, and building a collective ownership mindset. Members are responsible for:
- Educating employees on ESOP basics
- Planning and executing communication strategies related to the ESOP, and to overall company performance
- Organizing ESOP-centric events and activities to support and promote employee ownership, including special recognition of Employee Ownership Month
- Creating, managing, and distributing ESOP newsletters, videos, brochures, and other support materials
- Engaging employees in the ownership culture
- Soliciting employee feedback through surveys or listening sessions, and sharing it with management
3 Ways ESOP Committee Members Can Make a Difference
Sitting on an ESOP Committee brings with it a number of responsibilities, but your participation also gives you a voice in elevating the ESOP and being a difference-maker in 3 key ways:
- Encouraging ESOP awareness and understanding through touchpoints where employees can ask questions, access informative materials about ESOP benefits, and/or meet with individual committee members.
- Cultivating an inspired and authentic ownership culture by demonstrating the value of empowered decision-making, collaboration with colleagues, and taking initiative to be a part of shaping the company’s future.
- Driving company performance by motivating employees to step into their roles as owners, thinking about and acting on ways to enhance productivity and innovation.
What’s in it for me?
Of course, as an ESOP Committee member you benefit from your work in equal measure with the rest of the employee-owners, but there are other considerations:
- Personal and professional development of leadership competencies, business operations acumen, critical thinking, and active listening skills
- Stronger working relationships through collaborating with colleagues from different departments, and broadening your reach across the organization to build a sense of community
ESOP committees are essential in building successful employee-owned companies. Volunteering to serve on a committee is an impactful choice — for you, your colleagues, and your company.
Whether you’re currently on a committee or thinking of joining, ensure the work of an ESOP Administrative or Communications committee is leveraged. Amplify your efforts and foster an ownership culture using insights from our downloadable infographic, ESOP Communication Flow.
