WASHINGTON, July 11,
2024 /PRNewswire/ -- It's no secret that
American employees are generally happier and more productive when
they own a share of the firm they work for. A new study shows that
similar benefits accrue to foreign workers of U.S. employee-owned
companies that have operations overseas. That's significant,
because in today's globalizing economy, many private,
employee-owned U.S. companies are multinational corporations with
global workforces and operations. The study was conducted on behalf
of the Employee-Owned S Corporations of America (ESCA) by
Rutgers University Institute for the
Study of Employee Ownership and Profit Sharing. It underscores the
"halo effect" of employee ownership for international employees of
U.S.-based ESOP companies.
The study found that multinational ESOP (Employee Stock
Ownership Plan) -owned companies appear to derive competitive
advantages in international markets from being employee-owned.
Executives reported numerous benefits, including enhanced
recruitment and retention; employee productivity and financial
security; corporate reputation; and customer loyalty.
Even in cases where foreign workers for ESOP companies do not
have an ownership stake (due to legal, regulatory or cultural
barriers), executives have found ways to ensure they can benefit
financially from company success—for example through profit-sharing
or grants of synthetic equity.
With more than 10 million participants in more than
6,000 U.S. corporations, ESOPs are the most prevalent form of
broad-based employee ownership in the
United States.
The Rutgers study drew on interviews with multinational S
Corporation ESOP companies, including ESCA members Amsted
Industries, Black & Veatch, Burns & McDonnell, Schweitzer
Engineering Laboratories, and Taylor Guitars.
Stephen Smith, Chairman,
President and CEO of Amsted Industries told Rutgers, "We do not have a retention issue for our
leadership in any country.… You can tell that people are just proud
to be a part of us. It's not only the pay, but it's that we
integrate them into the company too."
"The efforts and success of these multinational
private, ESOP-owned companies demonstrates that these
companies are invested in the wellbeing and growth
of all of their employees, and this has economic
and cultural impact beyond U.S. operations" says ESCA
President & CEO, Stephanie
Silverman. "And each company finds a way to protect,
adapt or expand that investment that in turn supports a secure
ecosystem of trust, loyalty and growth."
With the employee ownership movement growing, and ESOPs
increasingly seen as a major tool for strengthening business and
driving growth that has bipartisan appeal, the Rutgers study's analysis and case studies offer new
insights and models for today's globalizing economy.
To read Rutgers' full report,
click here.
To learn more about the Employee-Owned S Corporations of America
(ESCA) CLICK HERE
About Employee-Owned S Corporations of America
(ESCA)
ESCA, Employee-Owned S Corporations of America, is the voice
in Washington, DC that speaks
exclusively for employee-owned S corporations ("S ESOPs"). Since
1998, ESCA's membership has grown to represent more than 250,000
employee-owners in virtually every state in the nation. ESCA
company members engage in a broad spectrum of business activities
and are a variety of sizes – from 25-person businesses to companies
with 20,000+ employee-owners – but all have one thing in common: a
commitment to protecting the S corporation ESOP structure and
promoting it so that more working Americans can become
employee-owners.
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SOURCE The Employee-Owned S Corporations of America (ESCA)