4 Ways Marketing Your ESOP Externally Pays Off
We’ve noticed a missed marketing opportunity among ESOP companies. They gloss over the fact that they are an employee-owned business!
It’s an easy mistake to make. After all, being an ESOP really only affects current employees, right? Ehh, yes and no. Yes, current employees directly benefit from their ESOP participation. No, because customers, job-seekers, and even communities can all benefit from the knowledge that they are doing business with an employee-owned company. That knowledge, in turn, benefits your company.
What Does Marketing Your ESOP Externally Mean?
We brought to life a lot of these principles through an employee-owned client’s website, DRM Industries. You’ll notice throughout their website that employee ownership is a common thread and more specifically on the Employee Ownership page of their website we address the benefits outlined below.
The Benefits of Marketing Your ESOP Externally
1. Attract Talent.
Being an ESOP is a competitive advantage, especially in our current tight labor market. Not only does an ESOP provide unique financial benefits to new hires, but it also provides insight into the culture of the business. A business that rewards its employees by making them shareholders indicates a company that values their staff and shares its successes with the people who make it happen. That can be incredibly attractive to job seekers in today’s market, many of whom are looking for a job where they can make a difference, a company that values their contributions, and/or a place that simply recognizes - and values - them for the people they are. An ESOP may be exactly what puts your open position ahead of your competitors.
The key here is to make sure your ESOP company is not only telling job seekers that you’re employee-owned but what it truly means. You don’t want someone uneducated in ESOPs to think it’s “too good to be true.”
Here’s an example of DRM Industries and what we highlighted on the employee ownership page of their website.
2. Retain Talent.
We know you are already using your ESOP as a retention tool and do your best to keep current employees up-to-date on the plan and its performance. So how does marketing your ESOP externally help you retain talent? By cultivating a sense of pride in your employees and by demonstrating the value employees have in your organization. Survey after survey shows that feeling valued and appreciated is more important than ever for employees. Being part of an ESOP provides employees with tangible evidence of your appreciation. Marketing your ESOP externally shows the world how much you value your employees. It can be a source of pride for employees to hear about their company in the news or to field questions from friends and neighbors about the company and its ESOP. This positive attention can help increase retention and improve productivity.
In addition, if employees have a common language around speaking about the ESOP outside of the organization, or a place they can direct people they’re talking to about it, they’ll be more confident and could help with recruiting efforts as well.
Here’s an example of DRM’s Employee Ownership page on their website where we helped them explain the comparison of share dollars with an ESOP vs. non-ESOP company. Followed by the comparison the website highlights ESOP frequently asked questions. This example is not only good for potential talent to view but current employees to understand themselves.
3. Enhance Your Brand.
Marketing your ESOP externally creates additional PR opportunities. We’ve already covered how an ESOP can attract jobseekers, but customers can be attracted to ESOPs too, especially once you start telling them how it works. Being an employee-owned business is an important differentiator that can help you stand out from your competitors. The differences show up to the public as better customer service and higher quality products and services because employees are deeply invested in the success and reputation of the business. Happy customers leave happy reviews and unique business models draw the attention of local news teams. Make the most of both of these PR opportunities by promoting your ESOP outside your organization.
4. Improve Your Bottom Line.
Employees who are personally invested in the success of the business via an ESOP are more likely to work hard and drive business growth and performance. But another way to improve the bottom line is by attracting new customers. Consumers are increasingly interested in “shopping small”, working with “socially responsible” companies, supporting family-owned and local businesses, and rewarding businesses that treat their employees well by shopping there. ESOPs check all the boxes…but it only works if consumers know you’re an ESOP! Marketing your ESOP externally can attract new customers and solidify the loyalty of current customers.
Here’s DRM’s website and how we showcased what the ESOP means for a customer.
You’ve Earned Your Bragging Rights
There are relatively few ESOPs in the country compared to the number of businesses in general. This, combined with their unique reward structure, is a reason to focus on marketing your ESOP externally and HeiPro is here to help. We specialize in making ESOP websites stand out from the crowd by helping them bridge the gap between their excellent internal culture and their external marketing. Find out how your website is performing by booking a free website audit with us. In the meantime, check out our blog post about 5 things every ESOP business needs on their website.