Own It! Embracing ESOP Benefits

Recognizing The Benefits of Employee Ownership

October marks Employee Stock Ownership Plan (ESOP) month, a time to celebrate the power of employee ownership and reflect on what makes being part of an ESOP firm truly special. ISG has been proudly 100% owned by employees since 2017. While becoming an ESOP was an intentional and strategic decision that warrants an annual celebration during ESOP month, it is bigger than that. It is also a chance to highlight how an employee-owned business model is a long-term investment in the future—benefitting the firm, employees, and clients.

The Benefits of Being an Owner

In an ESOP, every employee becomes an owner, and their ownership grows over time. That’s powerful. They build wealth and a stake in the firm’s success. Profits don’t go to outside investors; they are directed back into the business and into the pockets of the people who helped generate them: the employees. Being an owner changes the mindset when people come to work every day. Each project feels personal when you know the outcome directly impacts your future.

The culture of an ESOP is unbeatable. It is lived and breathed every day. Unlike other ownership structures that often rely on potlucks and social events to build culture, being an ESOP is about creating an inclusive atmosphere where everyone is invested in the firm’s success, resulting in a thriving workplace that benefits employees and clients alike. The heightened sense of responsibility drives employees to go above and beyond, ensuring excellence in everything we do.

The pride and motivation of being an employee owner is something that doesn’t come with working for firms with other ownership structures. It creates an environment where clients can trust that their needs are at the forefront of every decision we make. The ESOP ownership structure also fosters a deep sense of commitment and accountability among team members, which translates into higher quality work and more innovative solutions.

A Personal ESOP Experience

ISG employee owner Josh Muckenhirn, AIA, NCARB joined the team with experience working in a privately held firm structure and an ESOP structure. Having worked in both environments, he brings a clear perspective on the differences. “At a privately held firm, I remember them sharing financial results, but it didn’t feel as meaningful. Under the ESOP structure, like at ISG, financial results are shared more openly.”

Combining ISG’s ESOP structure with an #Allin ownership mentality, financial and performance results are regularly shared through firmwide owner updates, giving employee owners insight into project successes and the direct impact of their day-to-day efforts on the firm’s achievements. Josh notes, “These owner updates help me focus on what’s driving our growth and success. I get excited to see what’s happening and to share that excitement with those around me. Everyone is literally invested in our success.”

With employee ownership comes a sense of responsibility. You are an owner and must be committed not only to short-term success, but also long-term sustainability. Think of it like a car. It’s like a car—you don’t just fill the tank. As an owner, you invest in maintenance to keep it running well into the future. Being an employee owner makes a huge difference in how everyone approaches their work each day.

A Special Milestone: Celebrating Fully Vested Employees

ESOP Month is a fun celebration at ISG. We take the time to not only recognize the benefits of employee ownership firmwide, but also to celebrate those who became fully vested over the past year. Employees at ISG follow a vesting schedule in which they gain a larger share of their ownership each year after two years of service. By year six, they are 100% vested and have earned full ownership in the company’s success.

In 2024, ISG welcomed 25 employees to the list of fully vested owners. Their commitment and hard work are backed by the tangible benefits of 100% ownership. Newly vested employee owner Eric Gjersvik, PE, LEED AP reflects, "Reaching this milestone feels like such a rewarding accomplishment. I'm grateful that my work not only supports ISG’s success but also helps build a more secure financial future for me and my family.”

Why Choose an ESOP?

For firms developing an ownership transition plan or exploring acquisition opportunities, joining an ESOP can be advantageous. The long-term stability and shared success model of an ESOP creates an ideal environment for firms seeking to expand their impact while securing a bright future for their employees.

Joining forces with a firm that prioritizes its people through employee ownership can enhance opportunities for their growth. Attracting like-minded professionals who bring an #Allin mentality, ESOPs are well-positioned to diversify their services by recruiting top talent and fostering innovation. According to an ESOP Association survey, 85% of respondents indicate that the employee ownership model has a positive impact on corporate culture.

If you are considering a career move, there is no better time to explore the benefits of an ESOP firm. Employee ownership aligns everyone’s interests—from the president to the newest hire. The unique culture, financial benefits, and long-term focus set ESOP firms apart in ways other ownership structures simply can’t match.