“Good employees hard to find? Harder to keep?”

It’s a challenge nearly every business owner understands — especially in today’s tight labor market. But there’s one proven ownership structure that consistently outperforms when it comes to employee retention: Employee Stock Ownership Plans (ESOPs).

In fact, ESOP companies are 3–4 times more likely to retain employees than comparable non-ESOP companies. That’s not a trend — it’s a pattern backed by decades of data.

Why ESOPs Retain Talent Better

1. Employees think like owners.
When team members have a real stake in the company’s value, they’re more engaged, more motivated, and more committed to long-term success.

2. ESOPs create financial alignment.
Employees are literally building wealth as they build the business. That sense of shared reward keeps people connected — even when the job market is competitive.

3. Culture becomes a competitive advantage.
ESOP companies often see stronger teamwork, clearer communication, and higher loyalty. People stay where they feel valued and included.

The Data Speaks for Itself

And the numbers back it up. ESOP companies aren’t just a little better at retention — they are dramatically better:

• During the COVID-19 period, ESOP companies were 3–4 times more likely to retain staff than non-ESOP firms.

• The median tenure of an employee-owner is 5.1 years, compared to 3.5 years for non-owners — a 46% increase.

• ESOP  quit rates are roughly one-third of the national average.

• Employee-owners are far more likely to receive profit-sharing, training, and strong benefits packages.

• ESOP  participants, on average, build six-figure retirement wealth through their ESOP accounts.

These are not isolated statistics — they show a consistent advantage in engagement, satisfaction, and long-term loyalty.

The Bottom Line

If retaining your best people feels harder than ever, you’re not imagining it. But there is a solution that sets top-performing companies apart.

An ESOP transforms employees into invested partners — and in return, companies experience higher retention, stronger culture, and long-term stability.

If you’re thinking about improving retention, succession planning, or company culture, an ESOP may be the smartest strategy you haven’t implemented yet.

Cyndi Hines, CPA, CVA
Contact us to learn more: info@ecpesop.com