ESOP Awareness Month

For almost 20 years, The ESOP Association and its member companies have been celebrating Employee Ownership Month every October. It is a celebration of the incredible spirit of employee ownership and an opportunity to educate employee owners about the tremendous benefits of employee stock ownership plans (ESOPs)

What exactly does it mean to be an ESOP?

  • ESOP = Employee Stock Ownership Plan
  • Tax qualified employee benefit plan governed by the same federal regulations (ERISA) as any other qualifying retirement plan (Ex. 401(k), IRA)
  • The ESOP only acquires shares of the company’s stock
  • These retirement accounts grow through the employee’s sweat equity (at no extra cost to employees)

What is the purpose of an ESOP?

  • Retirement benefit for employees
  • Participants share in the rewards & responsibilities of ownership
  • Tax savings for the company

During ESOP awareness month in October, we are taking time to recognize outstanding work from our employee owners for the following:

  • Becoming 100% vested in their ESOP after successfully working with the company for 6 years.
  • Achieving top Sales.
  • EOH Values award winners. Employees went above and beyond in these five (5) areas to make a positive impact at the company and were nominated by their peers.
    • Acts with Integrity – making decisions in the best interest of the company, taking time to consider the “right thing to do” and treating others with respect.
    • Laser Customer Focus – proactively assessing customers’ needs, under-promising & over-delivering on commitments and going above & beyond to provide both internal & external customers with the highest level of service.
    • Work Smart – assessing every situation to ensure the safety of employee owners, confirming highest quality product is delivered to the customer in the most efficient manner.
    • Always Seeking Improvement – bias for action, using company resources to grow return on investment, with backbone to identify the right course for the business.
    • Produce Results – focusing on key outputs for department/business by critically considering right priorities, fighting through setbacks and rising to the occasion to provide a successful outcome.

As an ESOP company, we, the employees, “own” the business. Each person has a stake in the outcome of “our” company. We move together as a team, so we all have a vested interest in the growth and continued success of our customers and our company. Congratulations to all our award winners!

Let’s Celebrate! ESOP Awareness Month Is in Full Swing

The month of October is identified as a time to celebrate the incredible spirit of employee ownership, recognize those who have gone above and beyond in the contributions to this company, and educate our fantastic employees about the future of our employee owned company.

At EOHI we strive to live by our company values – Acts with Integrity, Laser Customer Focus, Work Smart, Always Seeking Improvement, and Produce Results. This month, we honored several different employee owners who exhibit these values throughout our business.  We use these values to focus on how we work together as employee owners for our company’s growth and sustainability.

For example, Amy Vick, Accounting Associate at EOHI, was recognized at EOHI for her  laser customer focus. We asked Amy why she loves working at an ESOP company where she responded, “I appreciate working for such a great company where my input is valued and respected. I have vested interest in the success of our company and work hard to ensure I am doing my part to help the company prosper.”

It all begins with our Employee Stock Ownership Plan (ESOP). It is a unique retirement program where the employees receive stock in the company over time. As the company grows, so does the retirement accounts of our great employees.

Our employees take pride in the ESOP program for many reasons. Here are just a few benefits for being an ESOP company:

  • ESOP companies pay wages that are 5-12% higher than non-ESOP companies in the same industry.
  • Retirement account balances are 2.5 times higher.
  • ESOP companies grow 2.5 times faster than those companies without employee ownership.
  • Employee-owned companies are superior in performance, employee benefits and employee motivation.

As an ESOP company, the employees “own” the business. Each person has a stake in the outcome of “our” company. We move together as a team, so we all have a vested interest in the growth and success of our customers and our company.