Why ESOPs Matter
Did you know that TRS Group, Inc. is 100% employee-owned? In 2016, all of the outstanding stock of TRS was acquired by a trust that administers the company’s Employee Stock Ownership Plan (ESOP). An ESOP is essentially a retirement plan for company employees set up to invest primarily in the stock of the employer company. All of the participants in the ESOP are current or former employees of TRS.
Why does this matter? Working at TRS is not just a job – all our employees are employee-owners, and as such, have a vested interest in the success of our company. The ESOP enables employees to acquire beneficial ownership of TRS without investing their own money, with the goal of rewarding employees for their efforts and allowing them to share in the growth of the company. This shows in every aspect of our work -- from the way we treat our colleagues, clients and our projects, to the discipline and thought we put into making financial decisions.
Employee ownership plans reward employees for improving company performance. Through their ideas and efforts, employees improve individual performance, the effectiveness of their department and the overall profitability of the company. As a result, the company increases in value and the employees’ accounts are worth more. Just as investors expect a “return on investment,” employee owners can earn a “return on effort.” When employees are motivated by personal profit, as a group they can have a major impact on the success of the company.