Business View Magazine May 2023

98 BUSINESS VIEW MAGAZINE VOLUME 10, ISSUE 5 The other COVID challenge common for many industries has been the skilled labor shortage. However, that issue has largely not materialized with Salem, which is based in Winston-Salem, North Carolina but has offices in Pennsylvania, California, and the state of Washington along with a presence in Canada. There is little employee turnover at the company in part because employees have an ownership stake in the business. Salem operates as an employee stock ownership plan (ESOP). The company had record EBITA earnings in 2022, says Willard. Last year, employees also received a “stay” bonus to encourage team members to remain committed to Salem which averaged around $1,500 per employee. Many employees also received two pay increases. “Little things like these bonuses and other types of recognition definitely help,” says Willard. ESOP provides financial freedom for employees and corporate stability When Salem became an ESOP in 2000, it marked a significant change in the company’s structure. Within five years of that move, Salem became 100 percent owned by employees, and since has navigated economic peaks and valleys from the Great Recession to the 2020 COVID year. Today about 75 employees have various levels of ownership vesting but have been able to share in the record growth that Salem has experienced.