Here at Schimenti, we just wrapped up participation in a national celebration of ESOP companies with a variety of educational events and activities to educate and celebrate our employee-owners. In our third year of employee ownership, this month, called ESOPtober, was an opportunity not only to educate, but to celebrate and reflect on the positive impact of our ESOP structure.
On a national level, ESOPtober highlights the growing trend of employee ownership in the United States. Since 2016, an average of 251 new ESOPs have been created every year, with the construction industry being one of the top three sectors driving this growth. This shift towards employee ownership has been gaining momentum as more companies recognize the benefits it brings to the company, its employees, and its customers.
ESOPtober Celebration Activities
Throughout this month-long celebration, our employees were encouraged to participate in various celebratory and educational activities related to our ESOP ownership structure. One of the month’s highlights was a company-wide t-shirt design contest, in which employees from all departments unleashed their creativity to create designs that embodied the spirit of employee ownership.
In addition to the t-shirt contest, a series of interactive educational events was available to all employees to deepen their understanding of the ESOP structure and its benefits. These events covered the basics of ESOPs, how they work, and the financial advantages of being an employee-owner. The events were led by members of our leadership team who shared insights and experiences, providing valuable perspectives for everyone.
ESOPtober also aligned with Construction Inclusion Week, held from October 14th – 18th, an annual industry effort to increase awareness of the importance of developing a diverse workforce and creating an environment where employees can perform at their best. Our teams gave back to our local communities through charity donation drives. In partnership with WESTHAB, our Rye Brook and NYC teams donated winter coats and accessories, and our Irvine team, in partnership with OC Rescue Mission, donated clothing and personal care items. This Schimenti spirit is an energy and dedication visible through the relationships we build and the initiatives that support the community.
Schimenti Culture and ESOP Ownership
It’s no coincidence that since adopting the ESOP ownership structure three years ago, our overall employee engagement has continued to grow. This trend is consistent with national data on ESOP companies, where it’s reported that staff motivation and engagement are often increased, as is loyalty. Many companies report that their employees have an increased sense of job security, and attrition rates are nearly one-third of the national average.
The positive impact of the ESOP structure on our culture has not gone unnoticed in other ways, and it positively supports the health, safety, and wellness of our employees and subcontractors. Our promise of “Think safe. Work safe. Live safe” is supported by an ongoing focus on leading indicators and near-miss opportunities and implementing more robust communication of incidents and lessons learned. These initiatives and others have contributed to a recordable incident rate of 0.00, Schimenti is 2X safer than the construction industry average.
Crain’s New York Business recently recognized our firm as a Top 10 Best Places to Work. This recognition is a testament to our commitment to creating a positive work environment and fostering employee satisfaction. Schimenti has also been named the #1 firm on the ENR New York Top Retail Contractors list. This recognition from these industry-leading publications further validates the benefits of this ownership model.
Impact on Client Service Excellence
One of the most significant benefits of the ESOP structure for our clients is the reliability it offers in attracting and retaining the best and brightest employees in the industry. A recent study by the Rutgers School of Management and Labor Relations and the Employee Ownership Foundation found that ESOPs outperformed non-ESOPs in job retention and workplace health and safety. Our current employee tenure is about 5.5 years, contributing to a more scalable, experienced, and motivated workforce, benefiting our clients through higher quality work and more efficient project execution.
The pride of ownership that comes with being an employee-owner is evident in every aspect of our firm’s operations. Employees are more invested in the success of each project, knowing that their efforts directly contribute to the company’s overall performance and, by extension, their financial well-being. This heightened sense of responsibility and accountability leads to increased attention to detail, better problem-solving, and a more proactive approach to client needs.
Clients also benefit from the long-term perspective that ESOP ownership encourages. Instead of focusing solely on short-term gains, our employee-owners are invested in the firm’s long-term success. This mindset fosters a commitment to building lasting relationships with clients, consistently delivering high-quality results, and continuously improving processes and capabilities to serve client needs better. This long-term view provides clients with the confidence that we are not just here for today, but for the future, ensuring their ongoing success.
As the construction industry continues to evolve, our ESOP structure provides a solid foundation for long-term success. By aligning employees’ interests with the company’s and its clients’ interests, we have created a powerful engine for industry growth, innovation, and excellence. This alignment ensures that everyone is working towards the same goal, providing stakeholders with the reassurance that our future is bright and promising.
The success of ESOPtober is a testament to this model’s strength and the bright future that lies ahead for Schimenti, our employee-owners, and the clients we serve. Thank you to all who participated.