The power of employee ownership. It’s something we help our clients tap into, and a culture ESOP Partners fully embraced for ourselves in 2019, when we became employee owned.
In the six years since, our unique dual perspective as ESOP consultants and an ESOP company has provided us with even more insight about how to best help our clients navigate plan nuances. It has also unified our team around common goals, shared success, and the pride of being employee owners.
5 Essential Touchpoints for ESOP Buy-In
If you’re considering selling to an ESOP company, you may be wondering what it looks like to grow and support a thriving ESOP culture. We’ve found that 5 touchpoint meetings serve as a great framework.
1. The Big Announcement
Giving employees news about the new ESOP is exciting! Vesting in their futures could change the trajectory of retirement for many, and enthusiasm will run high. Make the announcement its own event. Separate it from other company communications, do it in person, and give the new employee owners a chance to celebrate as a group.
2. ESOP Fundamentals Meeting
Generally, a lot of questions arise following the great excitement around the initial ESOP announcement. It’s understandable given that this is likely new territory for employees and the plan is comprehensive.
Scheduling an ESOP Fundamentals Meeting soon after the announcement to revisit any high-level information that was shared during the kickoff and digging deeper into the plan details is a good strategy. Providing broader context around the basics may help ease any lingering apprehensions. Having a forum where the group can ask questions and learn from management and one another about the benefits of employee ownership makes the experience cohesive.
3. Annual Owners Meetings
Each year provides the opportunity to reinvigorate interest and excitement in your ESOP. Annual Owners Meetings give employee owners the space for teambuilding around the achievements and growth of the last year. The yearly cadence of these meetings also make them ideal for discussions about the overall company vision, and how the daily contributions of each person impact shared success and stock share values.
4. Retirement Benefits Overview Meeting
Sharing breakdowns of the contributions and benefits the company has made to qualified retirement plans — ESOP and 401(k) — over a time period of your choosing (annually, biannually, etc.) gives employee owners a snapshot of the growing ESOP benefits. A retirement benefits overview meeting also increases visibility around the company’s commitment to helping employees grow professionally and enjoy a secure financial future.
5. Annual ESOP Projections Meetings
In the broadest sense, annual ESOP projections meetings help ensure the ESOP remains aligned with the company’s overall strategic direction while supporting the financial futures of employees.
For employee owners, this meeting provides estimates of the potential future value of their ESOP accounts based on hypothetical growth scenarios. This exercise doesn’t guarantee any particular outcome. Rather, it demonstrates how ESOP retirement accounts may grow over time as the company’s stock value increases and regular contributions continue.
Living the ESOP Journey
At ESOP Partners, we don’t just support the ESOP journey; we live it every day.
As we celebrate our sixth anniversary as an employee-owned company, we’re reminded of the transformative power of ESOPs—not just for financial growth but for fostering a collaborative, engaged, and purpose-driven workforce. These types of milestones reaffirm our commitment to helping other companies unlock the same potential, empowering employees and businesses to thrive together.
Learn more about the benefits and expectations of selling to an ESOP company with insights from our eBook, What to Expect After the Transition to an ESOP Company. Download your copy below.
