• Canadian employee ownership,  Communication,  Culture,  ESOP Benefits,  participative culture

    The magic ingredient for creating a successful ESOP

    Employee ownership works. It makes companies, on average, better, faster, and stronger. The typical employee-owner stays with his or her company longer, and many of them come up with the kinds of creative ideas that can push expenses lower than managers thought possible, or that open up new lines of business. Overall, the statistics show that, on average, everyone comes out ahead with employee ownership. Not surprisingly, some companies do far better than their peers, and some employee-owned businesses do not get any performance benefit at all, or may even do worse.  What separates the companies that outperform from the ones that underperform? A successful ESOP requires open communication. The…

  • Canadian employee ownership,  Communication,  Culture,  Employee Ownership,  ESOP Benefits,  participative culture

    Every new ESOP requires Participation to be successful

    As ESOP Experts we write about participation a lot when it comes to ESOPs. Our whole design and implementation methodology is based around a participative approach, and that’s no coincidence. But what does participation look like? Does it always mean representation on the Board of Directors? Where a goal of the ESOP is an overhaul or integration of the company’s corporate culture, a significant factor could be whether or not employee-owners should have a right to representation on the board of directors. In a unionized company the unions usually require that representation, if they are to look at an ESOP as a means of supplementing wage concessions. Because ESOPs are…