Okay, that doesn’t rhyme but the ESOP is even better than ice cream, though mint chocolate chip is pretty delicious. Like an ice cream truck, strong companies that offer ESOP’s attract people and not only that, keep them coming back for more.
What is an ESOP you might ask? It is an Employee Stock Ownership Plan, which is a type of benefit plan which gives eligible employees ownership interest in the company as part of their routine compensation. It is also a way to seamlessly transition ownership to the next group of leaders. The CORE Group has always been about the group. It is not about a few key figures with massive egos but rather the sum of all its parts.
“We have great people and want to build a workplace where people enjoy coming each day, want to stay, and feel like they have a future.” says President Tim Tempel, “Part of the reason we felt so strongly about switching to an ESOP was that we have seen what happens to companies when there is not a smooth transition plan. There is a lot of uncertainty, turmoil, loss of motivation, turnover and a whole host of other things. Employees struggle, client’s needs aren’t met and the company and corporate culture takes a hit. Our hope is that all of our employees and the company are still thriving 30, 40 or 50 years after we have stepped down from our leadership roles. Having a solid succession plan is key.”
In today’s fast paced market, it is all too easy to get caught up in the day to day and fail to plan for the future. Many companies never get there. In taking pre-task planning to the next level, co-founder Jill Dressel & Tim felt like they needed to find a way to keep all that was good, motivate and retain employees, provide opportunities and share the success of the company. The ESOP does all of that. They already offer great benefits, unlimited PTO, 401K with employer matching, a flexible work environment, compensate employees well and have been recognized as a Top Work Place six years running. Providing a way to transition ownership to employees and the future leaders as part of their normal compensation and without employees having to come out of pocket is huge. Jill adds,
“In many ways we have always acted like an ESOP, culturally and operationally. We have a flat organization, multiple shareholders, no egos, allow decision making at all levels and we all work as a team towards the common goal of keeping clients happy. Being able to allow our employees to participate in the growth and success of the company is absolutely right for us.”
The CORE Group made the transition to an ESOP in November of 2018 and over the long term, employees should see a huge impact to their retirement planning. Not only do they get to share in the growth of the company, but their efforts can directly impact that growth and their own future. That is liberating and one of the reasons ESOPs are more coveted than traditional retirement plans such as 401K’s. Jill and Tim have no immediate plans to retire and rather than worrying about what happens when retirement is in play, they can instead focus on leading and growing the company, preparing the next group to lead etc. Surrounding themselves with solid people only makes it easier and we look forward to more good things to come.