Top Five Reasons It's Great To Work for an ESOP Company
TMC Transportation is employee-owned, meaning that all eligible employees are part-owners at no cost to them through an Employee Stock Ownership Plan (ESOP). So what, you ask? While there are many benefits, here are our top five reasons it’s great to work for an ESOP company!
1.) Job Security.
Research studies consistently show that employee-owned companies perform better than companies that are not employee owned. TMC is living proof! Since establishing our ESOP in October 2013, our company has grown and prospered. Our driver fleet has grown, our Logistics department has more than quadrupled in size, plus we opened a massive, state of the art terminal in Brownsburg, IN last year, and we are in the process of expanding our Columbia, SC operation as well.
2.) Together. Everyone. Achieves. More.
Employees tend to work harder when they have some “skin in the game.” Being able to benefit directly from the overall success and profitability of the company adds significant financial motivation to work harder, think creatively, and work efficiently as a team. This synergy creates a far more rewarding work environment.
3.) More Retirement Assets.
Most companies offer their employees a 401(k). TMC offers their employees a 401(k) in addition to their ESOP retirement savings plan. In fact, according to a 2010 study, 56% of ESOP companies offer their employees at least one additional retirement savings plan on top of their ESOP. As such, employees of ESOP companies tend to have far more in retirement assets than workers of non-ESOP companies. Additionally, unlike a 401(k), employees do not contribute any of their own money towards their ESOP. Anything they receive is extra and at no cost to them.
4.) Incredible Growth Potential.
The value of the ESOP is dependent on the success and profitability of the company, so the value of ESOP shares can fluctuate over time. Generally, a 7% growth is average, but if the company does especially well, there can be an incredible share value increase from year to year. Over time, ESOP allocations can add up to large numbers. That being said, thanks to all of our hard working employees, TMC’s 2017 share price shows an increase of over 150% since we went ESOP in 2013!
5.) Rare Benefit.
There is no such thing as a perfect job or a perfect company. You will likely experience ups and downs no matter where you work. An ESOP is an amazing benefit that is incredibly rare to come by. In fact, there are only approximately 7,000 ESOPs in place nationwide, with far fewer that are trucking companies.
Learn more about the basics of ESOP on a previous blog here.
Ready to join the team? Check out our open positions.