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It’s no secret that American employees are generally happier and more productive when they own a share of the firm they work for. A new study shows that similar benefits accrue to foreign workers of U.S. employee-owned companies that have operations overseas. That’s significant, because in today’s globalizing economy, many private, employee-owned U.S. companies are multinational corporations with global workforces and operations.

The study found that multinational ESOP (Employee Stock Ownership Plan)-owned companies appear to derive competitive advantages in international markets from being employee-owned. Executives reported numerous benefits, including enhanced recruitment and retention; employee productivity and financial security; corporate reputation; and customer loyalty.

The study was conducted on behalf of the Employee-Owned S Corporations of America (ESCA) by Rutgers University Institute for the Study of Employee Ownership and Profit Sharing. It underscores the “halo effect” of employee ownership for international employees of U.S.-based ESOP companies.

Even in cases where foreign workers for ESOP companies do not have an ownership stake (due to legal, regulatory or cultural barriers), executives have found ways to ensure they can benefit financially from company success—for example through profit-sharing or grants of synthetic equity.

With more than 10 million participants in more than 6,000 U.S. corporations, ESOPs are the most prevalent form of broad-based employee ownership in the United States.

The Rutgers study drew on interviews with multinational S Corporation ESOP companies, including ESCA members Amsted Industries, Black & Veatch, Burns & McDonnell, Schweitzer Engineering Laboratories, and Taylor Guitars...

 To access the full report visit the ESCA website.