Employee ownership has dropped to 49 percent. About 20 percent of the steelmaker's managerial workforce was laid off last year. The ESOP created high employee expectations about ownership that have been difficult to coordinate with the evolving, long-term needs of the company, says David L. Robertson, Weirton's executive vice president for human resources and corporate law. Meeting some of those ownership expectations in the face of layoffs and changing economic circumstances especially when union leaders are concerned about protecting jobs means every day must include communication with the workforce about the business process, Robertson says. The ESOP can be a great burden or a great opportunity .
HR can be the principal voice for heightened responsibility and heightened awareness.
Productivity increases average 4 percent annually at firms with ESOPs, more than double the 1.5 percent average experienced by other companies, says Douglas L. Kruse, an associate professor at Rutgers University School of Management and Labor Relations. Kruse's figures are based on a survey of 54 employee ownership studies. Some studies have shown that private companies with ownership cultures experience annual growth 8 to 11 percent greater than that of other companies, Rosen says. Employees need to understand expenses in a real way. If you just say work harder,' that's not going to get people to act as owners.