Spotlight on employee ownership

Today in Washington, tens of thousands of baby boomer business owners are preparing to step away from their companies and into retirement. Commonly referred to as the “Silver Tsunami,” it translates to 67,000 local businesses, 682,000 jobs, and billions in payroll and tax revenue potentially at risk. In rural towns, the stakes are even higher – when businesses close, there is a higher chance of them not being replaced, leaving empty storefronts, fewer neighborhood services, and quieter main streets. 

Too often, businesses close simply because there is no one to take them on. Only one in three businesses successfully transition within families, and of those placed on the open market, just 20% find a buyer. That leaves countless business owners without a path forward, and countless communities facing loss. 

That’s where the Washington Center for Employee Ownership comes in. WACEO is a nonprofit organization dedicated to promoting and supporting employee ownership across Washington state. It serves as a resource hub for business owners, employees, and other stakeholders interested in transitioning businesses to employee ownership models, such as Employee Stock Ownership Plans (ESOPs) and worker cooperatives.

Employee ownership, selling a business to its employees, is another path for owners looking at a succession plan. Employee ownership allows selling business owners to receive fair market value and liquidity for their companies while keeping businesses rooted in the communities that rely on them. For workers, it means better wages, stronger benefits, and the opportunity to truly own a piece of the place where they work. It transforms jobs into careers and employees into stewards of a company’s, and community’s, future. 

Research demonstrates the difference -- employee owners: 
•    Earn 33% higher median wages 
•    Stay in their jobs 53% longer, and 
•    Accumulate 92% more household wealth than their counterparts 

Employee-owned businesses grow faster and are far less likely to lay off staff in times of economic downturn. Beyond the numbers, employee ownership creates resilience. Businesses owned by their employees weather economic storms with stability. Workers show up with greater commitment, confidence and creativity. Communities gain enterprises that are not only anchored locally but also invested in building a future there. 

“At WACEO, we are building toward that future, but we cannot do it alone,” Director Patricia Kwan said. “If you know a business that might be ready for this path, or someone curious to learn more, connect them with us. Join us in spreading the word. Together, we can keep good businesses local, protect jobs, and create stronger, more resilient communities across Washington.”

You can learn more about the Washington Center for Employee Ownership employeeownershipwa.org, and you can contact Patricia Kwan at patricia@employeeownershipwa.org.

Take the WACEO survey

WACEO wants to learn more about where Washington businesses and advisors are in their exploration of broad-based employee ownership – especially worker cooperatives and other shared-equity models. Take the survey to help guide WACEO’s efforts.