An ESOP Construction Company: An Owner on Every Project

The idea of offering employees ownership in the company for which they are employed began in the mid-1800’s, before the advent of social security. At that time, most workers lost their income entirely once they became too old to continue working. Employee stock ownership plans (ESOPs) were a solution that set aside stock as an incentive for employees to work hard and dedicate themselves to their jobs over the long term. This structure is ideal for a construction company like Basic Construction, as our business relies heavily on the relationships between our employees and our clients.

In addition to benefiting employees in their retirement, ESOPs have become a valuable competitive advantage. An unfamiliar business structure in today’s economy, just over 11,000 companies in the U.S. are structured as ESOPs. However, for customers and clients of these businesses, the impact is often quite clear.

Employee ownership leads to high performance among U.S. companies – including construction companies like Basic. American companies with substantial employee ownership often outperform those without, with lower staff turnover, higher trust, and greater shareholder value according to research done at Harvard and Rutgers Universities.

An Owner on Every Project

When employees are personally invested in the success of a construction company, a sense of personal responsibility and dedication is established that impacts every aspect of daily work. Employees see themselves not only as workers – project managers, client representatives, accountants or marketing staff – but as leaders of the construction company. They have the power to make a positive difference for their company and their customers. The result is generally more focused and more intent customer service, and more thoughtful and responsible decision-making.

Throughout a complex, 16-month sewer project on Old Wormley Creek Road in York County, Virginia, all of Basic Construction Company’s utility crews contributed to the efforts at some point to help resolve some tough challenges. On a daily basis, the teams’ relied on individual expertise and combined problem-solving to address deep installation depths, excessively wet ground conditions, and deliver appropriate traffic control over four miles of new gravity and force main sewer installation. The long-anticipated project benefited from not just one, but many owners on site every day, striving to deliver on the promise of a rehabilitated urban streetscape. In the end, the team’s successful collaboration allowed Basic deliver a beautifully landscaped roadway that connects residents with the county sewer system in place of failing septic systems.

The project was a huge success, due in large part to the vested interest of Basic Construction’s owner-employees.

Dedication to Building Long Term Client Relationships

The ESOP model leads to businesses that operate for the long term, not just the next quarter. Employee owners grow to understand the positive impact that repeat clients have on the business, and understand their ability to contribute to building those relationships. By focusing every client interaction on meeting and exceeding the client’s needs, and delivering tailored solutions for every individual project or request, clients experience a higher level of service and quality results.

The sense of ownership, fairness and financial reward help an ESOP construction company like Basic attract and retain the most highly skilled employees, and retain them over the long term. The result is a stable and personal experience for our customers with people whom they grow to know and rely on year after year.

To learn more about how our ESOP business structure benefits our clients and customers, or for a consultation on your next project is located in Eastern Virginia, contact Basic Construction at (757) 249-3789 or visit us at www.basicconstructionco.com.