A paper released yesterday by the National Center for Employee Ownership showed the results of research into worker economic well-being created by employee-ownership. The study found that among the sampled workers, all ages 28 to 34: workers who are employee-owners have 92% higher median household wealth, 33% higher income from wages, and 53% longer median job tenure relative to workers who are not employee-owners.
ESOPs are a great tool to combat wealth inequality, as workers share in the growth in equity value of their companies. The study’s authors said:
“Quantitative and qualitative research at the company level has shown that ESOP companies tend to grow faster and provide greater job stability than similar non-ESOP companies, making ESOPs an effective tool to create and save jobs in vulnerable communities. Because workers at ESOP companies share in the success of their companies, ESOPs should directly address the crises of mobility, wealth inequality, and stagnating wages.”
At the end of April, Swissturn’s employee-owners received their first Employee Stock Ownership Plan (ESOP) statements. For the first time, they were able see the value of their Swissturn stock and how the ESOP will generate personal wealth for them and their families.
Some other data from the NCEO study:
“-In 2013, the median employee-owner had household income equal to 378% of the poverty line, compared with 293% of the poverty line for non-employee-owners. Most of this difference emerged over a period of years—the two groups had nearly the same median income-to-poverty ratios in 1997.
-For families with children ages 0 to 8 in their household, the employee-ownership advantage translates into median household net worth nearly twice that of those without employee ownership, nearly one full year of increased job stability, and $10,000 more in annual wages.
-Employee-owners of color in this data have 30% higher income from wages, 79% greater net household wealth, and median tenure in their current job 36% over non employee-owners of color.”