As the second largest majority Employee-Owned Company in the nation, Penmac Staffing is excited to celebrate Employee-Ownership Month throughout October. According to the National Center for Employee Ownership (NCEO), Penmac ranked as the number one largest company that is 100% employee-owned, with 24,470 employees. In 2017, the top 100 employee-owned companies employ 615,000 people. To celebrate, 31 Penmac branches* will be hosting an Employee-Ownership Month Open House on Thursday, October 19, from noon to 3pm. Employees can stop by for refreshments and chances to win a Penmac prize pack, as well as a $200 Walmart gift card. This October, consider what employee-ownership means to you, as well as businesses across the nation.
What does employee-ownership mean?
In its simplest terms, employee-ownership means exactly what it sounds like—employees own the company. According to the NCEO, an employee stock ownership plan, or an ESOP, “is an employee benefit plan that offers advantages to business owners, their companies, and their employee.” It offers tax benefits, protects jobs, and provides employees with a significant retirement benefit. In Penmac’s case, the ESOP is funded by the company, meaning the employees pay nothing. Shares are allocated to eligible employees each year. The share value is based on an annual independent valuation of the company.
The United States has employee-owned companies in almost every industry, including manufacturing, banking, engineering, construction, and more. These nearly 7,000 employee-owned companies are in every region in the nation and cover more than 14 million participants. These companies range in size from just a few employees to more than 250,000 employees. The first ESOP was established in 1956; in the last sixty-one years ESOPs have grown in size and popularity.
Employee-owned companies are generally more productive, faster growing, more profitable, have less turnover, and generate more wealth. Businesses and jobs are more likely to stay in the same state for employee-owned companies, and these companies are 25% more likely to stay open. During the last recession employees working at ESOPs were four times less likely to be laid off. Because employees are personally invested in the success of the company, productivity and business performance is typically better in employee-owned company.
While Penmac is excited to celebrate employee-ownership with its team throughout October, it’s really a celebration that lasts all year long. We are grateful for the dedication and teamwork that we see each day from our team. Thank you, Penmac employees, for your commitment!
*Our Russellville, AR location will not be participating in the Open House due to office renovations.