Top Five Reasons It's Great To Work for an ESOP Company
on Thursday, April 26, 2018
in
ESOP
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). 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 only 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! On top of this, TMC is also in the process of expanding the Columbia, SC Driver Orientation & Training facility.
2.) Together. Everyone. Achieves. More.
Employees tend to work harder when they have some “skin in the game.” Employees gain a deeper financial motivation to think harder, work efficiently, and do their best for the company because they directly benefit from the company's success! This synergy creates a far more rewarding work environment.
3.) More Retirement Assets.
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, TMC offers ESOP savings in addition to a 401(k)! It's no wonder that 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. However, 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. 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! In 2019, employees who have been with TMC since 2013 are averaging over $75,984 in their ESOP accounts.
5.) Rare Benefit.
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.
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