What is the real “value-add” of a contract manufacturer to its customers? It is their people. How best to cultivate a winning team year over year? It could be… by empowering them through ownership of their company!
The basic ESOP structure that converts employees into part owners of the company creates unique benefits that help the company raise its quality and increase customer satisfaction to a higher level. Some of these benefits include:
• Motivation- Shared ownership motivates people at all levels within a company to take the extra step, to make the extra effort to achieve cross-functional objectives. As owners of the company, employees are empowered to take ownership of their performance and quality of work and take pride in their company’s brand and success. It truly is a team effort which translates to consistently providing a quality product to customers year after year.
• Retention- Retaining experienced, highly productive people is the key to maintaining long term customer relationships. The ESOP Contract Manufacturer typically has very little employee turnover. This results in a familiarity with the products, processes, and personnel of their respective customers which in turn strengthens the trust between both companies. ESOP benefits are structured to incentivize employees to stay for the long term which helps the company retain valuable knowledge. The company’s customers, in turn, benefit by having a consistent team of knowledgeable experts who are committed to their continued success through years of cooperation.
• Training- is especially productive and effective if the personnel are motivated and plan to stay with the company. The training programs develop strong in-house expertise and challenge the respective employees to learn new skills and hone the ones they have.
• Equal voices for change/improvements- ESOP Contract Manufacturers typically enjoy a diverse, open forum in terms of driving improvements in processes, procedures, and products. These improvements are a direct benefit to their customers.
• Fun place to work- Life is short. ESOP Contract Manufacturers recognize the importance of looking forward to helping their fellow “owners” and the customers who depend on them …it is fun and rewarding, it’s not just going to work to pick up a paycheck. You will likely see the difference when you take a tour through an ESOP Contract Manufacturer’s facility. Enthusiasm and collaborative atmospheres are pervasive.
• Communications- Typical ESOP companies excel at communications as they understand the importance of working together to solve customer’s challenges. You will usually find a collaborative solution seeking vs. finger-pointing. The ESOP culture facilitates an outward-looking view in support of its customers. It creates faster, focused, quality solutions.
In summary, ESOP Contract Manufacturers understand their “value-add” to their customers. The “employee-owners” are the key to maintaining and growing long-term customer relationships. Their enthusiasm, pride of ownership, and experience have a profound impact on ensuring quality products and services are provided consistently to their customer requirements. For these reasons, the ESOP Contract Manufacturer should be uniquely positioned to support your outsourcing requirements