ESOP

As a company committed to delivering value to both customers and employees, 20/20 Plumbing & Heating, Inc. is a 100% employee-owned company, and we have been strategic in creating an employee stock ownership plan (ESOP) that ensures a long and healthy company legacy. 

An ESOP is an employee benefit plan that gives workers ownership interest in a company. When ESOPs are formed, shares of company stock are allocated to all employees, making them employee owners who share in the company’s rewards and risks. Having a personal stake means employees are more invested in helping the business succeed and more likely to collaborate and solve problems.

ESOPs help narrow the wealth inequality gap, since employees at ESOP companies tend to earn higher wages and have greater savings than their peers in non-ESOP companies. According to the ESOP Association, ESOPs distributed $126.7 billion nationally in 2018. There are currently 6,549 ESOP companies in the U.S. with 10.5 million employee owners. These employee owners each hold an average of $129,251 in value. 

Studies show that ESOPs:

• Balance wealth inequality

Employee owners typically have a retirement plan that requires no out-of-pocket contribution from them, as opposed to a 401(k) plan. They share in rewards when then company performs well.

• Boost job security & employee retention

Employee owners enjoy greater job stability. The latest national research shows that companies with employee stock ownership are 7.3 times less likely to lay off employees than conventionally owned firms.

• Increase productivity & motivate employees

Research shows that giving workers a significant stake in the company improves employee attitudes, resulting in an improved company bottom line. 

• Promote local jobs

ESOPs are more likely to withstand tough economic times and less likely to lay off workers.

• Provide superior employee training

Employee owners are 1.4 times more likely to receive employer-sponsored training than employees in non-ESOP companies. 

ESOPs are a win for not only employee owners, but for the companies themselves and for the communities where they operate. A 2000 Rutgers study found that ESOP companies grow 2.3% to 2.4% faster after setting up their ESOPs. Companies enjoy long-term financial health, tax benefits and business continuity that comes with retention of employees who know the business and customers best. In turn, communities enjoy both a reliable employer and provider of goods/services. Further, ESOPs’ better employee retention means that workers contribute to the local economy and don’t draw unemployment benefits. 

Companies with ESOPs and other broad-based employee ownership plans account for more than half of Fortune Magazine’s “100 Best Companies to Work for in America” list year after year.

At 20/20, we see ourselves as more than a plumbing and HVAC company. We are community builders, and building community begins within our own organization. We are proud to be a thriving 100% employee-owned ESOP, where employee ownership drives a forward-thinking culture and self-sustaining profitability.

As a leading plumbing and HVAC contractor in California and Nevada since 2015, increasing demand for our services means that we are always on the lookout for team members who share our uncompromising standards of ethics, professionalism, accountability and customer service. Check out the many exciting career opportunities 20/20 has to offer, and apply today! Visit: https://2020ph.com/careers/.