Success Stories

According to Mike Mallaro, VGM Group, Inc., Chairman of the Board, employee ownership is a central part of the company’s culture, driving employee engagement and customer service. 

“Employee ownership sits at the center of our culture. Its direct impact on employee engagement - most VGM employees think and act as owners - leads us to better serve our customers, which leads to superior results.

The decision by our founders to sell to an ESOP in 2008 was a huge win-win-win. The founders got paid very well for their business while also being able to stay in leadership roles for many more years. More than 1,000 employees earned life-changing wealth over time.  And our community thrived as it kept a major employer and all the jobs that go with it.”

In this insightful reflection on employee ownership, Nadav Mer emphasizes that the foundation of a successful transition to employee ownership lies in building a culture of trust and transparency.

“Employee ownership is the most hopeful and optimistic model I have found yet that ensures thriving people and companies.

Companies need to build a culture of trust and love with their employees as a baseline for even being able to start the conversation about employee ownership.  For example, at our shop, years before we ever dreamed about an employee ownership transition, all employees had the keys to the shop and were trusted with tremendous responsibility.  Owning these cultural practices and artifacts made employee ownership possible.

Companies interested in employee ownership should discuss it openly with each employee to make sure everyone has clarity on the pros and cons.  Several employees at our shop were worried about personal financial liability for example, which is a non-issue for employee owners.  Also, you must give this discussion lots of time for everyone to digest the ramifications.  One year is a good rule in my experience assuming you have the right cultural elements in place.”