A recent report published by the Employee Ownership Foundation shows that employee-owned companies have outperformed non-employee-owned counterparts throughout the pandemic. While the pandemic introduced new economic challenges, majority employee-owned companies have shown incredible resilience and ability to maintain stability.
"A significant new study has shown that majority employee-owned companies
with Employee Stock Ownership Plans are outperforming non-employee
owned companies during the COVID-19 pandemic in the areas of job retention,
pay, benefits, and workplace health safety. " (EOF)
Employee Stock Ownership Plans (ESOPs) have seen many benefits from their business model. Among these benefits are a higher ability to retain employees, maintain standard hours and maintain salaries. As compared to other firms, majority employee-owned companies were 3 to 4 times more likely to retain staff at all levels.
Beyond these impressive numbers, employee-owned companies care about their employees. Majority ESOP firms were proven “more likely to provide protective measures for employees” such as personal protective equipment and cleaning services versus other firms. They were also found more likely to send employees home to work remotely during the pandemic, allowing them to maintain their health and safety.
Looking towards a future post-pandemic, ESOPs are far more confident in a return to usual level of operations. Other firms were 6 times more likely to doubt their company’s ability to fully recover from COVID-19.
Colorado is proud to be the home of 108 ESOPs and counting. Colorado Employee Owned Companies embrace a variety of sizes and business structures. There are ample different employee-ownership models to fit each company differently. The Employee Ownership Office at the Colorado Office of Economic Development and International Trade (OEDIT) is happy to consult with any interested parties who would like to learn more and explore their options.
About the Colorado Employee Ownership Office
The Colorado Employee Ownership Office establishes a network of technical support and service providers for businesses considering employee ownership models. In April 2019, Governor Jared Polis established the Colorado Employee Ownership Commission. The commission consists of experts who are invested in helping Colorado become a leader for employee ownership.