Employee Owned ESOP
BACK Construction is 100% Employee Owned… But What Does That Mean?
You may hear companies proudly proclaim they are employee-owned. But there’s always some mystery to that sentence that leaves people wondering… How do employees “own” their company? Does that mean everyone is in charge? How does employee ownership work?
When a company is employee-owned, it means they have an Employee Stock Ownership Plan, or ESOP. It’s a rare and beautiful thing to be 100% employee-owned (many companies with an ESOP are only partial), and we’re more than happy to explain how employee ownership works in general, and at BACK Construction. In this article, we’ll answer the commonly asked questions about ESOP and share the true meaning of being a 100% employee-owned company.
What does “employee ownership” mean?
Employee ownership means no single person, family, or third party is a majority shareholder of company stock. An ESOP is a special type of defined contribution plan designed to provide broad based employee ownership. Employees do not legally own stock. Instead, employees are beneficial owners as shares are allocated to participant accounts, which are held in an employee stock ownership trust (ESOT). Management roles for an employee-owned company mirror those of most workplace organizations. However, working for an employee-owned company is a positive experience because employees at all levels of the organization have ownership opportunities. It’s a true team environment.
If everyone is an “owner,” who oversees the company?
Like we mentioned earlier, management roles for an employee-owned company mirror those of most workplace organizations. Each company has its own process for overseeing its ESOP, and its company as a whole. When it comes to BACK Construction, our board of Directors works for our employees (the shareholders). The Board of Directors oversees BACK’s management making sure all activities are to the benefit of the company.
How does an ESOP affect company culture and morale?
When a company is 100% employee-owned, employees have a true stake in the company’s success and feel more inclined to make day-to-day decisions that drive businesses forward. When BACK’s employees take pride in their work, it’s because they have a real investment in the company’s success.
Summary
At BACK Construction, company culture isn’t just a trend or buzzword. We prioritize investing in our biggest assets, our employee-owners. All 70+ employees are encouraged to reach new heights while serving our customers within the Home Improvement industry. All employees at BACK Construction are able to succeed as individuals in a thriving 100% employee-owned culture where collaboration and ownership are two key pillars of BACK Construction’s core values.
Deborah B.