In 1998, Lawrence Companies established an Employee Stock Ownership Program (ESOP) and became 100% employee-owned in 2004. There is such a great sense of pride that comes with this. All employees, after working for the company for a short period, become owners. This allows them to play a vital role in the future success of the company.
What Is An ESOP?
An Employee Stock Ownership Plan is an employee-owner program that provides a company’s workforce with an ownership interest in the company. Companies provide their employees with stock ownership, at no upfront cost to the employees.
Employee Stock Ownership Programs mean something different to each of the key stakeholders. Company executives see ESOPs as tools that help align employee goals with company goals. ESOPs also improve organizational performance as a differentiator in recruiting, retaining, and rewarding employees.
To employees, ESOPs are a benefit that helps them prepare for retirement. An Employee Owner Program provides the employees with ownership in the company. The funds are kept in trust by the company until the employee retires or leaves. The shares are then repurchased by the company for redistribution or are voided.
When Did ESOPs Begin?
The first ESOP was established in 1956 by Louis Kelso. Kelso realized that employees could work their whole life and then retire and have no money to live off. With the ESOP, the funds collected over the years is provided upon retirement or leaving the company.
There are now over 10,000 ESOP companies that account for 10% of the private-sector workforce.
Benefits of Working for an ESOP
An ESOP is an employee benefit that helps them accumulate retirement savings. This is extremely important given that only about a third of employees believe they will be financially prepared for retirement.
ESOP plans have a significant impact on overall retirement savings with balances being anywhere from three to five times higher than the average 401k balance.
The benefits of working for an ESOP are more than just financial. They also:
- Improve the well-being of workers
- Facilitate greater participation in decision making
- Lead to higher pay, benefits, and wealth
- Lead to greater job security and satisfaction
- Increase trust in the company and leadership team
Each employee considers every decision for the well-being of the customer and the company. When the customer is happy, the company succeeds and so do the employees. Employee ownership holds each employee accountable to providing the highest level of customer satisfaction to ensure customers’ expectations are exceeded. Employees tackle each job with passion, integrity, and pride. Lawrence Companies is in a relentless pursuit to continue to improve the customer experience.
At Lawrence Companies, every decision effects the employees’ livelihood. That’s why you can expect the highest quality service and dependability in all departments of the business. The Companies’ core values are exhibited in every aspect of the business. Visit the website to experience the Lawrence Companies’ culture.