Engaging Younger Employees Through ESOP Communication

ESOP companies often struggle with getting their younger employees to care about the ESOP. Retirement seems far away and not immediate enough to incentivize employees. Yet this does not mean that the ESOP cannot motivate employees.

Some companies help younger employees value the ESOP by showing the growth in ESOP value over a long period of time with a basic retirement calculator. Young employees can easily see that they have the most to gain from successful company growth.

Other companies choose to communicate the non-financial benefits of the ESOP such as continued independence and sustainability of the company that would be threatened with other forms of ownership, or the existence of an ownership culture characterized by two way communication and where all employees’ input and ideas are valued. . ESOP ownership enables these companies to prioritize commitments to culture, customer service, mission impact and long-term sustainability over short-term profits.

Many companies focus on building a culture of ownership to engage young people. The culture of ownership translates into growing responsibilities for younger employees and opportunities to learn, develop and advance their careers, which research has demonstrated is key to retaining younger employees. In fact, many ESOP companies have coupled this with ESOP communication, by inviting young employees onto their ESOP committees, as an opportunity for them to gain buy-in into the ESOP, develop leadership competencies and gain visibility.