It’s hard to appreciate something you can’t understand. Carl Morgan—The ESOP Association’s 2017 Employee Owner of the Year—knows that firsthand.
In 2001, Carl was working for a construction company that was purchased by Emery Sapp & Sons. Suddenly, he was part of a new company, with a new culture, and an odd benefit called…an ESOP?
Initially, he didn’t understand the ESOP, and neither did those around him. That confusion bred skepticism. “We’re going to get money, with no strings attached?” they wondered. “Sure we are.”
Nothing had prepared them for this kind of experience.
As a supervisor, Carl gave his crews any company information at his disposal. He also sent feedback up the line, saying more and better information were needed.
Carl couldn’t have known it then, but he would be intimately involved in providing that information and education to his fellow employee owners.
Starting the Journey
When he joined ESS, Carl says today, the company was in its ESOP infancy. And like many new ESOP companies struggling with strange technical and financial requirements, focusing on culture and communication weren’t high priorities.
That changed in 2011. With the ESOP note paid off, the company started an ESOP Journey Committee to help new and existing employees better understand the company, the ESOP, and the culture.
Since Carl had shown an interest in better ESOP communication, he was asked to become an inaugural member. Only Carl remains from the original group.
Along the way, Carl has demonstrated a passion for helping employee owners understand the ESOP, and the culture required for the ESOP to fulfill its potential. Drawing from his own experiences, he has spearheaded efforts to tell the ESOP culture story in clear, unmistakable terms that all can understand.
He developed an ESOP 101 lecture that he gives to new employee owners and that has been well received. Each session includes 30 minutes of material and a 15-20 minute question-and-answer period.
The flexible format enables participants to get help with any issues they find confusing. “Each question-and-answer sessions is completely different,” says Carl.
Another early effort was the Straight Talk Guide, an easy-to-understand pamphlet that helped new employees grasp ESOP basics. It also explained the role of the ESOP Journey Committee, and included contact information for each member.
Carl developed another talk that explains how living the ESOP culture—caring about your own job and contributing to the organization overall—is vital to the success of the company and the ESOP.
Later ESOP communication efforts became increasingly sophisticated.
A “What’s in your wallet?” campaign was launched at a special meeting, where employee owners received a wallet-sized card listing the number of shares they owned. The cards generated unexpected excitement and interaction. Younger employees were amazed, saying to one another, “Look how much I have in my account!”
“That little card was an eye opener for us,” says Carl, who adds that stock information had been sent to employees’ homes, but didn’t seem to have the same effect. And what effect did this initiative have on Carl? “It was one of the neatest moments I’ve had” in ESOP communications, he says.
The ESOP Journey Committee also found a creative way to organize ESOP information. Realizing there were four stages in an employee owners’ ESOP experience (new hire, vested, mid-career, nearing retirement), they organized online content into those categories. The approach makes it easier for employees to find and digest information most relevant to them.
The idea was highlighted by the judges for the 2017 Annual Awards for Communication Excellence as a Bright Idea other ESOP companies might emulate.
Carl’s ESOP journey extends beyond Emery Sapp & Sons. He has shared his ESOP experiences with elected officials on Capitol Hill, and speaks to newer ESOP companies about culture and communication.
Understanding Leads to Results
What advice would Carl give to those starting in ESOP communication today? Explaining how the ESOP works is key, he says. When employees can’t understand the basics, they become skeptical.
Once they understand the ESOP, and the culture that goes with it, great things can happen.
Carl points out that from 1999-2009, Emery Sapp didn’t focus much on culture. The stock price rose. “But, after we started this education process,” says Carl, “our stock has gone up vertically” and at a time when “some pretty good construction companies were going out of business.”
Culture, says Carl, “is 90 percent of the reason our stock price is what it is today.”