TM - May 2008 - (Page 48) application by Teresa “TJ” Baskerville American Systems Employees Earn a Piece of the Pie Talent managers might talk about incentives, performance improvements and reward methodologies, but some companies have found considerable gains in making employees actual owners. If they own stock, employees are more compelled to do their best because their efforts are tied to the bottom line. In today’s crowded marketplace, everyone’s trying to get a piece of the pie. At American Systems, employees can earn it, not only for the company but for themselves. The majority-owned employee stock ownership plan (ESOP) company has turned a nontraditional employee benefit into a far-reaching value chain that significantly contributes to the organization’s bottom line and also enables employees to own a stake in the fruits of their labor. Meeting and Exceeding Expectations An employee stock ownership plan (ESOP) is a retirement plan that establishes a trust fund to invest primarily in the company’s stock on the employees’ behalf. For employees, an ESOP translates to a supplemental compensation fund into which annual contributions are allocated so employees may share in the value their work generates. Allocation and vested amounts depend on a variety of factors, including overall employee compensation, total years of service at the company or a combination of the two. The investment becomes owned by employees when they are deemed partially or fully vested. The employer’s contributions to an ESOP on behalf of employees grow tax free until an employee’s retirement, death or disability. The financial rewards associated with ESOPs can be particularly impressive for long-term employees, who start to see the fiscal benefits of the ESOP in a new light when their accounts grow over several years to levels beyond their initial expectations. With approximately 1,500 employees, American Systems, a government and commercial technology solutions proMay 2008 vider, is one of the top 100 majority-owned ESOP companies in the United States, out of about 11,000. American Systems employees number among the nearly 10 percent of the U.S. workforce employed by an ESOP . The premise on which American Systems based its decision to become a majority-owned ESOP company in 1990 was a simple one: employee-owners, as true stakeholders, would perform better, serve as the company’s most effective brand ambassadors and produce better results for the company, customers and themselves. What began as a philosophical experiment became a versatile company with an available, committed and self-managed professional staff that consistently delivers more than is expected and tangibly contributes to its customers’ success. Win-Win for Employers and Employees For American Systems employees, the ESOP serves as an additional source of retirement income — not necessarily a primary source, as may be the case with a traditional retirement savings plan, such as a 401(k). Rather, with the ESOP employees take an active role in boosting their , retirement savings by helping their company achieve its business and revenue goals. In this way, when the company does well, it can share its success with employees through ESOP allocations and value growth. For employers such as American Systems, the advantages of an ESOP are obvious. Employees are on the frontlines with customers and are closest to the day-to-day processes that keep the company moving forward. With a vested interest in the company’s success, employees are motivated, empowered and entrusted to put their best 48 talent management magazine www.TalentMgt.com http://www.TalentMgt.com
Table of Contents Feed for the Digital Edition of TM - May 2008 Talent Management - May 2008 Editor's Letter Contents Human Performance Leading Edge Learning Connections Make the Connection: Effective Employee Evaluations Vacation: The Benefit Many Employees Don't Take The Four Pillars of Managing Performance Transform Talent With Deeper Skill Specialization Mentoring's Role in Succession Planning Graybar: Supporting a Long-Term View of Talent Management American Diabetes Association: On a Mission to Improve Employee Health Taking the Talent Pulse: What Drives High Potentials? American Systems Employees Earn a Piece of the Pie Advertisers’ Index Editorial Resources Full Potential TM - May 2008 TM - May 2008 - (Page Intro) TM - May 2008 - Talent Management - May 2008 (Page Cover1) TM - May 2008 - Talent Management - May 2008 (Page Cover2) TM - May 2008 - Talent Management - May 2008 (Page 1) TM - May 2008 - Talent Management - May 2008 (Page 2) TM - May 2008 - Talent Management - May 2008 (Page 3) TM - May 2008 - Editor's Letter (Page 4) TM - May 2008 - Editor's Letter (Page 5) TM - May 2008 - Contents (Page 6) TM - May 2008 - Contents (Page 7) TM - May 2008 - Contents (Page 8) TM - May 2008 - Contents (Page 9) TM - May 2008 - Human Performance (Page 10) TM - May 2008 - Human Performance (Page 11) TM - May 2008 - Leading Edge (Page 12) TM - May 2008 - Leading Edge (Page 13) TM - May 2008 - Learning Connections (Page 14) TM - May 2008 - Learning Connections (Page 15) TM - May 2008 - Learning Connections (Page 16) TM - May 2008 - Learning Connections (Page 17) TM - May 2008 - Learning Connections (Page 18) TM - May 2008 - Learning Connections (Page 19) TM - May 2008 - Learning Connections (Page 20) TM - May 2008 - Learning Connections (Page 21) TM - May 2008 - Make the Connection: Effective Employee Evaluations (Page 22) TM - May 2008 - Make the Connection: Effective Employee Evaluations (Page 23) TM - May 2008 - Make the Connection: Effective Employee Evaluations (Page 24) TM - May 2008 - Make the Connection: Effective Employee Evaluations (Page 25) TM - May 2008 - Vacation: The Benefit Many Employees Don't Take (Page 26) TM - May 2008 - Vacation: The Benefit Many Employees Don't Take (Page 27) TM - May 2008 - Vacation: The Benefit Many Employees Don't Take (Page 28) TM - May 2008 - Vacation: The Benefit Many Employees Don't Take (Page 29) TM - May 2008 - The Four Pillars of Managing Performance (Page 30) TM - May 2008 - The Four Pillars of Managing Performance (Page 31) TM - May 2008 - The Four Pillars of Managing Performance (Page 32) TM - May 2008 - The Four Pillars of Managing Performance (Page 33) TM - May 2008 - Transform Talent With Deeper Skill Specialization (Page 34) TM - May 2008 - Transform Talent With Deeper Skill Specialization (Page 35) TM - May 2008 - Mentoring's Role in Succession Planning (Page 36) TM - May 2008 - Mentoring's Role in Succession Planning (Page 37) TM - May 2008 - Mentoring's Role in Succession Planning (Page 38) TM - May 2008 - Mentoring's Role in Succession Planning (Page 39) TM - May 2008 - Graybar: Supporting a Long-Term View of Talent Management (Page 40) TM - May 2008 - Graybar: Supporting a Long-Term View of Talent Management (Page 41) TM - May 2008 - American Diabetes Association: On a Mission to Improve Employee Health (Page 42) TM - May 2008 - American Diabetes Association: On a Mission to Improve Employee Health (Page 43) TM - May 2008 - Taking the Talent Pulse: What Drives High Potentials? (Page 44) TM - May 2008 - Taking the Talent Pulse: What Drives High Potentials? (Page 45) TM - May 2008 - Taking the Talent Pulse: What Drives High Potentials? (Page 46) TM - May 2008 - Taking the Talent Pulse: What Drives High Potentials? (Page 47) TM - May 2008 - American Systems Employees Earn a Piece of the Pie (Page 48) TM - May 2008 - Editorial Resources (Page 49) TM - May 2008 - Editorial Resources (Page 50) TM - May 2008 - Editorial Resources (Page 51) TM - May 2008 - Editorial Resources (Page 52) TM - May 2008 - Editorial Resources (Page Cover3) TM - May 2008 - Editorial Resources (Page Cover4)
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