Expand employee ownership opportunities through voluntary profit-sharing programs and employee stock ownership plans (ESOPs), empowering workers to build wealth through direct investment in their company’s success. This approach leverages free market principles to align worker and business interests while preserving entrepreneurial incentives.
Economic Benefits:
- Productivity and Profitability
- Studies from the National Center for Employee Ownership suggest companies with ESOPs are typically 4% more productive and grow about 2.5% faster annually than non-ESOP peers
- Rutgers University research shows employee-owned companies were 235% better at job retention during the 2008 financial crisis compared to conventional businesses
Worker Benefits:
- Wealth Building
- Research by Joseph Blasi and Douglas Kruse of Rutgers University indicates workers at employee-owned companies typically have 2.2 times greater retirement accounts than at comparable non-employee-owned firms
- Data from the National Center for Employee Ownership shows ESOP participants have approximately 2.5 times greater retirement savings than workers in traditional companies
Business Stability:
- Longevity and Resilience
- A 2017 study by Fifty by Fifty found that employee-owned businesses are less likely to lay off workers during economic downturns
- Employee-owned companies show lower turnover rates, typically 5-7% lower than traditional companies