As the largest employee-owned staffing company in the nation, Penmac Staffing is excited to celebrate Employee-Ownership Month throughout October. 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 National Center for Employee Ownership (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 employee-owned companies are in every region in the nation and cover millions of 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. 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 to each of our employees!