When it comes to construction jobs, you have a choice. You can work for a company that “owns” you or you can have an ownership stake in the company for which you work—it’s a no-brainer. Don’t just get a job, get an opportunity to become a business owner and build wealth as you build your career!
At Oftedal, you can get the benefits of being a business owner without the risks of having to go it alone. Through our Employee Stock Ownership Plan (ESOP), you are a stakeholder in the company and control your own destiny. The more the company grows and succeeds, the more personal wealth you accumulate—it’s that simple.
Why work to make money for someone else, when you can be working to put money into your own pocket?
What is an Employee Stock Ownership Plan?
An ESOP is a retirement plan that allows employees to own company stock. At Oftedal, we are 100% employee-owned, so our success is in our employees’ hands. When we succeed as a company, we all win.
Our ESOP allows you to create financial security for you and your family, at no out-of-pocket cost to you. You accumulate stock in the company and when the company is successful that stock increases in value over time. Instead of investing in other companies or funds, you are investing in your own work.
How Oftedal’s ESOP Works for You
- As part of your benefits package, you will receive shares in Oftedal Construction through accumulated years of service.
- Those shares are held in a trust until you are prepared or eligible to receive a distribution. That distribution can be in-service, also known as diversification, or upon retirement, or when you leave the company.
- Once you are with the company for five years, you become fully (100%) vested in the stock that you have accumulated. This means that, no matter what, you own all the stock in your account. The longer you’re with the company, and the more successful the company is, the more shares you earn and the more wealth you build.
- When you choose to receive a distribution, Oftedal Construction repurchases your eligible shares and that cash can be rolled over into another qualified retirement plan.
- When Oftedal repurchases that stock from you, that stock is then reallocated to all the other active employee owners.
This gives you the unique advantage of being a true financial stakeholder in the company.
The Greater Benefits of ESOPs
As compared to businesses whose employees have no stake in ownership, employee-owned businesses:
- Are typically more productive and proud of their contribution to the company
- Grow at a faster rate
- Are less likely to go out of business
In addition, a study by the National Center for Employee Ownership concluded that compared to workers who don’t have ownership stakes in their companies, employee owners tend to:
- Get paid better
- Have higher net worths
- Be less likely to lose their jobs during slow economic times
Summary
There are many benefits to working for an employee-owned company. Whether you’re just starting out or you’re in the midst of your construction career, working for an employee-owned company like Oftedal can help raise you to a level that you cannot reach with companies in which you have no stake in ownership. So why work for anyone else when you can work for yourself at Oftedal?
Attention employee owners: Our 2023 annual stock valuation saw an increase of 19%. Our 2024 annual stock valuation will be released approximately in August of 2025. Our employee owners commitment to safety, efficiency and productivity will likely lead to another successful valuation in 2024!