Evergreen Cooperatives is a family of worker-owned cooperatives that includes the Evergreen Cooperative Laundry and Green City Growers. Evergreen Cooperatives focuses on creating economic development within specific neighborhoods in Cleveland, making it their mission to build up the people and communities around them. As Cleveland Foundation’s President/CEO and Evergreen Board Chairman, Ronn Richard, says: “Our goal is equitable wealth creation at scale.”

When the employee-owners of SRC Holdings gathered on the evening of Wednesday, June 15, 2022, for SRC’s 38th Annual Shareholder Meeting, you could feel the electricity in the room. Many of the company’s 2,000-strong workforce were in attendance—some with spouses, partners, and children in tow. Not only was everyone enjoying the ability to gather in person again, the company and its ten subsidiaries had been on a hot streak after a down year caused by the disruptions of the pandemic. Everyone was expecting big news because they were about to learn the updated share price of their company. They weren’t going to be disappointed.

      Each year, Fortune partners with the Great Place to Work Institute to survey employees at hundreds of corporate America’s top firms to determine which companies will be named as one of the 100 Best Companies to Work For. The most recent list, released in 2022, included Great Game Hall of Fame winner, Hilcorp Energy.

  Tom DeSimone, Director at Prairie Capital Advisors, Inc, joins to share the shifts his team witnessed during the pandemic, and how focusing on 2021 and not 2020 to ensure stability in your company.

Employee-owned businesses have experienced significantly fewer issues with employee retention than their non-employee-owned counterparts. I can’t remember a time in my career when employee retention was talked about more often than it is now. Even personally, I’m one of those Great Resignation statistics. In late 2021, I resigned from my position in local government to take on the role of Executive Director of Missouri Center for Employee Ownership, Inc. (MOCEO). Like many members of the American workforce, the pandemic pushed me to reevaluate my personal and professional priorities. So, when I joined MOCEO, I was very interested to learn what effect employee ownership had on employee retention. So, as soon as my second week of work, I began asking every executive of an employee-owned business I met, how their business model impacted retention. With very few exceptions, the general response was that retention wasn’t a significant issue.

The best, most successful companies feature highly participatory cultures in which employees routinely identify problems and share and implement ideas. High engagement cultures take a lot of work—the right information, the right team structure, management commitment, training time, and more. But a key factor that is often overlooked is the need to create a safe environment in which people feel comfortable dealing with conflict, taking risks, and trying new ideas. This blog talks about why this matters and how to get there. 

Liquidity options are plentiful for business owners: strategic sale, private equity, management buyout, family transfer, and leveraged recapitalization. Which path should you take? We know that 42% of the 2021 Great Game™ All-Star companies and many others walked a different path—implementing an Employee Stock Ownership Plan (ESOP). Apart from the fact that ESOPs can be a great exit strategy for open-book companies, here are the top five reasons why open-book management companies should consider an ESOP.

Using an ESOP for Business Transition Can Be Complicated, But Selling to an Outside Buyer Is Often Uncertain and Even More Complicated with Less Flexibility and Fewer Tax Benefits When people describe the pros and cons of ESOPs, often they note that the plans are complex. ESOPs are somewhat more complex than 401(k) and similar retirement plans and do cost substantially more to install and somewhat more to operate, mostly because an annual appraisal is required for closely held companies. But ESOPs are not more complex than selling to a third party. The table below compares what issues come up in the sale of a company to an ESOP compared to a sale to a third party. It was prepared with the advice of professionals who have done both kinds of transactions. The table indicates that the overall level of complexity is similar, but ESOPs are much less risky in terms of the likelihood of finding a buyer. They are also considerably less costly, mostly because in the case of a sale to a third party, in addition to substantial legal, accounting, and sometimes other fees, the price paid to the seller is usually reduced by brokerage commissions paid by the buyer.  Sales to third parties also do not qualify for special tax benefits, as is the case with ESOPs.

    In October 2019, Rick Hedden retired from SRC after 36 years. He was 59 years old. At the time, his shares in the company’s ESOP plan were worth seven figures. But the lessons he learned from playing the Great Game of Business over his career at SRC might be even more valuable. It helped him live his version of the American Dream. Here is his story.

The War for Talent is now in full swing. As the economy continues to reopen, companies have begun hiring again in earnest—driving the unemployment rate closer to pre-pandemic levels. At the same time, the number of open jobs in the U.S.—an estimated 9.2 million—is now breaking records. It’s one of those rare times in recent history where the number of job openings exceeds the number of unemployed people actually looking for a job.