Employee ownership works — but only if you invest in the culture that makes it thrive. Certified EO's 2025 Employee Engagement Benchmark makes that case clearly: 75% of employee-owned companies saw revenue growth last year, 86% reported positive share price movement, and 66% enjoy above-average retention. The question for HR leaders isn't whether employee ownership delivers results, but how to maximize its impact through smarter benefits design and communication.
Here's what the data says you should prioritize.
Build a Benefits Package That Meets Employees Where They Are
Nearly all benchmark respondents (97%) offer a 401(k) alongside their ESOP, and 76% of those provide some form of employer match or contribution. The most common structure is a 100% match on at least 3% of salary, used by 36% of companies. This dual-retirement approach isn't just generous — it's strategic. Younger employees, in particular, tend to focus on immediate financial benefits over long-term ESOP value. A strong 401(k) match gives them a tangible reason to stay engaged while their ESOP accounts grow.
If your company doesn't yet offer a 401(k) match, consider it a competitive gap. If you already do, make sure employees understand the combined power of both retirement vehicles — that's where communication comes in.
Communicate More Often, and Make It Interactive
The benchmark reveals a direct link between communication frequency and employee engagement with ownership. Companies that communicate about employee ownership monthly score a 3.24 on EO engagement, compared to 3.02 for quarterly and 2.88 for yearly communicators. The takeaway is simple: don't save ownership messaging for the annual meeting.
Just as important as frequency is how you communicate. In-person events are the gold standard, with 72% of companies rating them "very effective." Team meetings (57%) and wealth calculators (48%) round out the top three. Passive channels like emails, handouts, and office displays rank significantly lower. If your current strategy leans heavily on newsletters and intranet posts, it's time to rebalance toward interactive, face-to-face formats.
Don't Overlook Annual Milestones
Share price announcements have become the single most effective engagement driver, cited by 33% of companies — up from 21% the prior year. Employee Ownership Month in October is another high-impact moment, with 79% of companies celebrating it and 16% calling it their most effective activity. Build your annual communications calendar around these anchors.
Address the Younger Worker Challenge Head-On
Sixty-nine percent of companies identify educating younger workers on ESOP value as a significant challenge. Tailored messaging that emphasizes near-term benefits — like 401(k) matching, wealth calculators showing projected growth, and pride-of-ownership culture — can bridge the gap. Companies that include dedicated EO training during onboarding see nearly three times the first-year comprehension (14% vs. 5%) compared to those that only mention it in passing.
Employee ownership is a powerful differentiator, but it doesn't communicate itself. HR leaders who pair competitive benefits with frequent, interactive communication will see the engagement — and the business results — that the ownership model promises.
