Hoffman Mechanical Solutions, Inc. is an ESOP, formally known as an Employee Stock Ownership Plan. Our ESOP is a tax-qualified retirement plan that invests primarily in the employer’s stock. The company sets aside stock in the ESOP to help employees prepare for retirement. Our employees will be beneficial owners of the company at no cost, with equity in the company and retirement benefits. Non-management employees will not, however, participate in the management of the company, day-to-day decision-making, and hiring and firing decisions. The ESOP does not guarantee employment at the company.
There are two key differences between ESOPs and 401(k) plans. First, an ESOP invests primarily in an employer’s stock, while a 401(k) plan generally offers various mutual funds in which employees may invest funds. Second, 401(k) plans permit employees to contribute their own money to the plan, while ESOP contributions generally come solely from the company – making them completely free to employees.
Research indicates that ESOP companies tend to grow faster in sales
and employment. ESOP employees tend to have 2.2 times as much in
retirement savings as employees in traditional companies.
Why Work for an ESOP?
ESOPs offer unique benefits to their workforce, and employers are willing to invest in the employees because of the investment they receive from their employees.
Your daily work directly affects your future and retirement. Employee Stock Option Plans can be a benefit to employees of the company. The longer you stay with the company, the more equity you accrue in your ESOP account.
You will find your coworkers are equally dedicated since everyone in your company has something to gain from a job well done. This means everyone on your team is working hard for the company, themselves, and you!