Findorff, a Milwaukee construction company, has transitioned to employee ownership through an Employee Stock Ownership Plan (ESOP), allowing employees like Mike Smarelli to become shareholders. This trend is rising nationally, as shown by the establishment of over 200 ESOPs in Wisconsin. ESOPs promote employee retention and enhanced retirement savings, benefiting local businesses and communities.
In Milwaukee, Findorff, a construction firm, has transitioned to being fully owned by its employees for the first time, implementing an Employee Stock Ownership Plan (ESOP). Mike Smarelli, a long-time employee who began his career as a carpenter, now serves as a general superintendent overseeing projects in the Milwaukee area. He emphasizes the importance of relationships within the company and with clients, reflecting on the familiar community created through long-term collaboration.
Under the ESOP framework, employees grow to become shareholders as part of their retirement plan, receiving a portion of the company’s profits dependent on their tenure. Matt Breunig, Findorff’s vice president of operations, advocates that this transition not only aids in employee retention and recruitment but also fosters a thriving company culture. He expresses that the decision is driven by a commitment to employees’ interests and ensures future company success.
The trend towards employee ownership in the United States is gaining momentum, with approximately 251 ESOPs established annually since 2016, according to the National Center for Employee Ownership (NCEO). Wisconsin currently boasts over 200 ESOPs. Ryan Kauth, executive director of the Wisconsin Center for Employee Ownership (WICEO), notes that the state is seeing an increasing number of ESOPs each year, anticipating a significant rise in future transitions.
The NCEO reports that companies with ESOPs experience voluntary quit rates about one-third lower than the national average, with employee owners accumulating retirement savings more than double that of their non-ESOP peers. Kauth highlights that employee ownership significantly contributes to the sustainability of local businesses and communities.
Smarelli asserts that becoming an employee-owner enhances his commitment to Findorff, providing a tangible incentive for long-term dedication. He views the ESOP as a rewarding extension of his contributions to the company, reinforcing the belief that hard work will yield results in the future.
The rise of employee ownership models such as ESOPs, exemplified by Findorff in Milwaukee, illustrates a growing trend in the U.S. that benefits both employees and companies alike. This strategy not only motivates employees through shared ownership but also creates stronger workplace cultures. As more firms adopt this approach, it is anticipated that employee retention and financial well-being will significantly improve across the workforce.
Original Source: spectrumnews1.com
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