The ESOP Communications Sourcebook, 7th ed.

Explaining an ESOP to employees is difficult. The first challenge is that most employees have little experience with stock, and many do not really understand what stock is, where it comes from, and how it gains or loses value. Second, most employees do not understand how business works. This problem is made worse by the fact that most people either think they know more than they do or don't want to admit that they don't know. Third, ESOPs are not intuitive. At the NCEO, we have a hard time explaining ESOPs to business owners and financial reporters, let alone to everyday employees. One reason is that the terms used to explain ESOPs (allocations, leverage, distributions, vesting, fiduciaries, suspense accounts, valuation, and so on) are usually completely new to most employees. Fourth, employees generally are most interested to know the amount of stock they will receive and when they will receive it. Long explanations of this process can make employees squirm in their seats.

Communicating ESOPs is not easy, but it is rewarding. One of the goals of an ESOP is to improve company performance by getting participants more involved. Research demonstrates that an effective communications program, combined with an ESOP that is financially significant and an active employee involvement program, results in significantly improved productivity and faster sales growth.

This book provides a jump-start to your ESOP communications by giving you (1) chapters about how to communicate employee ownership and financial issues, (2) templates of short documents (included on the CD as well as in the printed book) you can customize and use as handouts, intranet resources, or newsletter articles; (3) a customizable PowerPoint presentation on ESOP basics; and (4) sample communication documents from ESOP companies in digital form on the CD.

The seventh edition builds on the success of previous editions by updating existing chapters and handouts; adding new chapters on communicating valuation, communicating the now of ESOPs, and using employee surveys to improve your culture; adding the PowerPoint presentation; and enhancing the selection of sample company materials on the CD.

Dallan Guzinski is the director of culture and engagement at the National Center for Employee Ownership (NCEO). Dallan works closely with employee-owned companies to improve their communication and engagement practices by gathering and responding to employee feedback using the NCEO's Ownership Culture Surveys. Dallan is an avid speaker at both public and private company events on topics such as corporate (ownership) culture, employee engagement and involvement, communication, employee surveys, and effective leadership and team behaviors for driving innovation and better workplaces.

Matt Hancock is a consultant at Praxis Consulting Group, Inc., where he assists employee-owned and mission-driven businesses and nonprofits in creating high-engagement cultures. An accomplished public speaker, writer, and thought leader, Matt is also a recognized expert on the Italian cooperative movement. Matt has assisted clients with communications, ownership culture planning, employee-owner committee planning, business literacy, labor-management partnerships, and leadership development. He also serves as a trusted advisor to senior executives and union leaders, and is a member of the board of trustees of the Employee Ownership Foundation.

Linshuang Lu, MSOD, is an organization development consultant and principal at Praxis Consulting Group, Inc. She advises employee-owned companies and nonprofits on team and leadership development, strategic planning, and culture change. She is passionate about helping organizations develop their leaders and foster deeper staff engagement to create better workplaces with higher performance. Linshuang is a member of the Ownership Culture Committee of the ESOP Association. She has also served on the board of the National Center for Employee Ownership and the ESOP Association.

Alexander P. Moss, MPPM, is a founder and the president of Praxis Consulting Group, Inc., where he advises employee-owned, nonprofit, and mission-driven corporate clients in fully engaging employees to drive organizational performance. Alex is a recognized leader on governance and leadership issues, succession planning, strategic planning, business and ownership education, and employee engagement and communications. He has served on the board of directors of the National Center for Employee Ownership, in many other leadership positions in the employee ownership community, and on a range of ESOP company and community boards.

Corey Rosen is the founder and former executive director of the NCEO and now is its senior staff member. He cofounded the NCEO in 1981 after working for five years as a professional staff member in the U.S. Senate, where he helped draft legislation on employee ownership plans. Before that, he taught political science at Ripon College. He is the author or coauthor of over 100 articles and many books on employee ownership, and a coauthor of Equity: Why Employee Ownership Is Good for Business (Harvard Business School Press). He has lectured on employee ownership on six continents, has appeared frequently on network programs, and is regularly quoted in leading publications. He holds a PhD in political science from Cornell University. 

Virginia J. Vanderslice, PhD, is a founding partner and the past president of Praxis Consulting Group, Inc. She has spent more than 25 years assisting employee-owned companies in developing high-performance ownership cultures. Ginny is a faculty member of the Organizational Dynamics graduate program at the University of Pennsylvania. Ginny also designed and is the academic director of a leadership development program for CEOs of ESOP companies co-sponsored by the Employee Ownership Foundation and offered as a certificate program by the School of Social Policy and Practice at the University of Pennsylvania.