## ESOPs and Employee Ownership

*   [NCEO (National Center for Employee Ownership) 17](https://www.ownershipeconomy.org/wp-content/uploads/2017/05/employee_ownership_and_economic_wellbeing_2017.pdf)
    *   Analyzing the effects of employee ownership (typically ESOPs, where workers gain a stake in their company and its stock)
    *   Data shows:
        *   **33% higher** income from wages
            *   _This holds true at all wage levels_
        *   **53% longer** median job tenure
            *   _5.2 years compared to 3.4 years_
    *   Employee owners also have access to an array of benefits at work including:
        *   flexible work schedules
        *   retirement plans
        *   parental leave
        *   tuition reimbursement
        *   Childcare benefits (23% of employee-owners compared to 5% of non-employee-owners)
*   [NCEO Economic Growth Report](https://www.nceo.org/assets/pdf/Economic_Growth_Through_EO.pdf)
    *   More data on employee-owner firms
    *   Compared to traditional firms, ESOP and companies with employee ownership:
        *   Generate **2.5% more new jobs** per year
        *   Have a workforce that is **⅓ to ¼ as likely to be laid off**
*   [Kruse 02](https://www.researchgate.net/publication/228871769_Research_Evidence_on_the_Prevalence_and_Effects_of_Employee_Ownership)
    *   **Analysis of a variety of studies on employee ownership**
    *   **Productivity** improves by an extra **4-5%** on average in the year an ESOP (employee stock ownership) is adopted, and the higher productivity level is maintained in subsequent years.
        *   This one-time jump is more than **twice the average** annual productivity growth of the U.S. economy over the past 20 years.
    *   Most studies find **higher organizational commitment** and identification under employee ownership, while studies are mixed between favorable and neutral findings on job satisfaction, motivation, and other behavioral measures.