What is an ESOP and Why it Matters?

In the simplest terms an ESOP is an acronym that stands for Employee Stock Ownership Plan which, in essence, is a retirement plan. But in reality, it is so much more. ESOPs are a multi-faceted means of motivating employees, improving worker retention, increasing productivity, keeping jobs within the community, and basically increasing a company’s ability to stay in business longer. As a case in point, MB HAYNES has been in business for more than 100 years. A contributing factor to this longevity is directly attributed to its ESOP.

Benefits For Employees:
Because employees literally have ownership of the company it changes their self-image from just an employee to that of an entrepreneur. There is an increased feeling of pride and common loyalty shared with the other members. They see their work contributing to part of a greater whole.

And since employees share ownership and profit sharing it contributes to a more harmonious workplace. Employees gain extra motivation by knowing that increased profits mean an increase in their own personal wealth. (See example below)

As an employee-owned company, everyone shares in its success.
Yearly contributions of the company shares can make a huge impact on employee’s lives. Here’s a short example of what Employee Ownership could mean for an employee.

Please note, this is just an example, and these results are not guaranteed.
The following does not account for any overtime and assumes an average 2% annual increase in wages. 401k balance is calculated based on a standard 6% employee contribution. Stock prices are assumed at an average growth rate of 7.5%. Actual stock prices will vary.
This infographic is solely for illustrative purposes and should not be relied upon in any way and should not be construed as legal, financial, tax, or other professional advice. Certified EO does not guarantee the accuracy of the results or their relevance to your specific circumstances

Benefits For Customers
When there is greater corporate transparency, as there is with an ESOP business, there is more involvement in employee work lives resulting in more access to information and participation in workplace decisions. And when employees have skin in the game it empowers them to think more creatively and to feel more confident in providing input on developing policies. As such customers benefit from the ideas of those with boots on the ground, not just the company management.

By allowing for this type of collective thinking and participation it facilitates a quicker more efficient means of translating customer feedback into company change. The service technician, project manager, or administrative assistant will be heard when they notice a problem and in turn, be more apt to dive in to help provide a solution to an issue.

ESOP employees understand that customers are the key to the business succeeding and therefore treat them accordingly. Everyone from the CEO down the ranks gets a pat on the back for increased profits and product innovation but then again everyone also gets a share of the blame for lost accounts or missed performance goals. This accountability, which promotes a “get it done” attitude, is a strong component to providing outstanding customer service.

As a result of a more engaged and motivated workforce not only do the employees thrive but customers also receive superior service thus building long-term relationships where everyone benefits. If put any other way, one would simply say an ESOP is a true win-win for everyone involved.

To see how you could become part of our ESOP visit our careers page for all our current openings.


A Proud ESOP Company
MB HAYNES is proud to be a 100% employee-owned company, allowing our workforce to reap its rewards while enabling our customers to benefit from the outstanding service our ESOP yields. With over 100 years of being in business and with a tremendous list of long-standing clients, we are blessed to be able to offer the ESOP opportunity to our dedicated employees who day in and day out strive for excellence or as we call it… doing business The HAYNES Way!