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source-library/worker_ownership/ESOPs.md
2020-05-28 21:38:12 -04:00

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## 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.