Construction industry employees work hard, and the team effort it takes to bring a project to a successful close can create a bond between management and the staff. Therefore, it makes sense that owners would want to reward the workers who keep the company engine running.
Popular employer-sponsored savings and retirement programs include the 401(k), Savings Incentive Match Plans for Employees (SIMPLE), Individual Retirement Account (IRA), Simplified Employee Pension (SEP) plan, and profit sharing, to name a few. But perhaps none demonstrate a stronger commitment to employees than the Employee Stock Ownership Plan (ESOP).
How can a construction owner decide whether an ESOP is the right move for the company, and what steps are involved in establishing the arrangement?