Gibson advisors Jak Kramer and Chad Side share what leaders should consider as they transition to and operate as employee-owned companies.
Employee ownership can create meaningful opportunities for business owners, employees and the organization. But changing the ownership structure is only the beginning. The real opportunity lies in how leaders communicate ownership, engage employees, manage risk and support the long-term value of the business.
As part of Unison Risk Advisors, a majority employee-owned company, Gibson employees experience employee ownership firsthand.
For Employee Ownership Month, we asked Jak and Chad to share what they are seeing among employee-owned companies and the questions leaders should be asking as their organizations transition and evolve.
How much work it takes to help employees understand what ownership really means. One common misconception is that employee ownership will automatically transform a company’s culture. It won’t.
Employee ownership tends to amplify the culture that already exists. If a company has strong communication, accountability and employee engagement, ownership can reinforce those strengths. If cultural challenges already exist, changing the ownership structure alone is unlikely to solve them.
Companies also underestimate the education required. Employees do not immediately understand how the ownership model works, what it could mean for their financial future or how their decisions connect to company value. That understanding develops over time and may differ by career stage.
The goal is not to explain everything once. It is to build a consistent approach to education that helps employees understand ownership over time.
That is when the real work begins. A transition creates energy, celebration and frequent communication. As it moves further into the rearview mirror, some organizations lose momentum.
Employee Ownership Month and annual ownership meetings create natural opportunities to celebrate, but employees should hear about ownership throughout the year. Leaders need to connect it consistently to the company’s goals, performance and direction.
That does not require another standalone initiative. Ownership can be incorporated into leadership updates, company meetings, team conversations and existing operating frameworks. Consistency matters more than fanfare.
It should prompt leaders to question assumptions. Rather than allowing insurance programs, employee benefits strategies and other decisions to continue unchanged, companies should ask whether those approaches still fit the organization.
Benefits are a significant operating expense, and different funding or plan strategies may offer greater control over cost and performance. Commercial risk deserves the same review.
Does becoming employee-owned change the organization’s risk tolerance? Should the company retain more risk through higher deductibles? Are alternative risk strategies worth exploring? Or does the organization want to retain less risk because employees now have a direct financial stake in the company?
There is no single answer. What matters is making the decision intentionally and recognizing that well-managed insurance and benefits programs can contribute to the organization’s long-term health and value.
The questions change as the organization matures. Early priorities may center on education and engagement; years later, leadership may face different financial and growth considerations based on the ownership structure.
For ESOP companies, for example, repurchase obligations can become increasingly important as employees retire or leave the organization and share values grow. Leadership teams need to understand how those future obligations could affect the business and work with their advisors to plan accordingly.
Growth strategy may also become more important. Among ESOP companies in particular, Jak and Chad are seeing growing interest in acquisitions within existing industries as well as opportunities to diversify.
The larger question for leadership is not simply, How do we keep growing? It is: How do we continue creating sustainable value for the company and its employee owners as the organization evolves? That question is worth asking long before it becomes urgent.
One useful question for every advisor is: How does our ownership structure change the advice you give us?
This applies across banking, legal, insurance, employee benefits and other professional relationships. Advisors do not need to work exclusively with employee-owned companies, but they should understand how the ownership structure affects their recommendations.
Ask about their experience, the risks or opportunities the ownership model creates and how their expertise can contribute to the organization’s value. The goal is to work with advisors who understand the business and think differently because employees have a stake in its success.
They make ownership part of how the business operates, not simply how it is structured. Employees need to understand what the company is trying to accomplish, how it is performing and where their work fits.
That does not mean opening every financial statement or turning decisions into companywide votes. But companies can give employees a stronger voice and encourage ideas from those closest to the work. When employees understand the business and feel invested in its direction, ownership can strengthen engagement and innovation.
Clear priorities, accountability and regular communication help employees understand where the company is headed and how they contribute. Companies should also make employee ownership part of their identity internally and externally.
Employee ownership can be a powerful differentiator, but only if the organization treats it as more than a transaction. The companies that get the most from employee ownership keep educating employees, evaluating their strategies and adapting as the organization evolves. What happens after the transition determines its long-term impact.
Whether you are considering employee ownership or already operating as an employee-owned company, Gibson can help you evaluate how your ownership structure may affect your employee benefits, commercial risk strategy and broader approach to protecting the business.