Business View Magazine - July 2024

positive ESOP culture has encouraged some formerly retired employees to return to work, eager to regain shares and once again influence the company’s future. As far as employee retention is concerned, loyalty like that can only be displayed by owners with a vested interest in their work. And fortunately, the title of owner is something employees get to enjoy very early on. New employees automatically join the ESOP and begin earning vesting shares after their first year. OSP has maintained a six-year vesting schedule, ensuring that employees are gradually integrated into the ownership structure. Additionally, the company has consistently bought back shares from departing employees after a year, redistributing them to current and future employees. This practice has reinforced the sense of shared ownership and is a driving factor behind the New hires are introduced to the ESOP during their onboarding process, and employees in general are given constant touchpoints to communicate the value of the ESOP. “We have a yearly meeting, get an annual evaluation done,thenwe have a party to hand out the statements,” says Director of Human Resources, Rebecca Plato, explaining how at one point the company was able to treat employees to statements showing over $7000 per share. To further educate and motivate employees,OSP even sends employees to ESOP conferences, providing them with insights and best practices. The goal is to quietly yet firmly convey that the ESOP’s long-term benefits are directly influenced by the impact of their contributions on the company’s performance. In the Ohio Screw Product’s case, the value has been communicated effectively, as the company’s highly 94 BUSINESS VIEW MAGAZINE VOLUME 11, ISSUE 07