“ESOPs, providing widespread employee ownership, provide a great benefit to employees. If the culture is nurtured in an ESOP company, over time, employees will start to act more like owners and less like workers coming in every day looking only for their paycheck” says Patrice Radogna,
Director/ESOP National Practice Leader at Marcum LLP. The power of feeling and acting like an owner of the company can be obvious. Here, we will examine key conditions that have to exist to maximize this power in creating business value. 1. Employees’ engagement with management’s initiatives or the level of resistance to anything new, change of status quo. This resistance is substantially increased in the current times of disruptive transformations across various industries and company sizes. If a company is undergoing multiple changes and creating an ESOP is one of them, employees’ acceptance of the new mindset and feeling and acting like an owner will be diminished. Creating a culture of change agility by transforming response to change is a prerequisite for the success of the ESOP. 2. Understanding how business works, key drivers of growth and profitability and the value stream is fundamental to employees’ understanding of their impact on the company, their contribution as well as impact of risks, challenges, solutions and ideas on business results. If employees do not have this understanding their motivation to come up with solutions and ideas for improvement will be minimal for a number of reasons:
Educating employees not only about how ESOPs work, but also about how business operates will help them see their impact at different points of the value stream. 3. Processes and procedures that set levels of empowered decision making. If employees have no control over at least some decisions, their motivation to think like owners will be suppressed leading to indifference. The foundation to a successful ESOP implementation is creating an engaging and collaborative culture that will drive employees’ interest and motivation to participate and contribute. Anna Samorukova creates and delivers change facilitation, transformation and learning experiences that inspire people and organizations to reach for potential and create an impact. If you are interested to learn more how your team can maximize potential and performance and make a difference at both personal and organizational levels with our frameworks based on neuroscience, psychology, motivation and experiential learning, please reach out. annas@edelweiss-group.com. BACK TO ALL INSIGHTS => SUBSCRIBE TO INSIGHTS => Director/ESOP National Practice LeaderCompany NameMarcum LLP
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