How Are ESOP Companies Recruiting and Retaining Employees?

Every few years, a new phrase is invented to explain why work isn't working.

"The Great Resignation." "Quiet quitting." Labor shortages. Skill gaps.

The labels change, but the underlying issue is the same; employers are struggling to find and keep good people, while workers are searching for jobs that offer dignified work and sustainable wages.

What's usually missing from these conversations is a discussion about ownership. Not ownership as an abstract concept, but ownership as a workplace reality. What happens when employees have a meaningful stake in the company they help build? Does it affect who applies for a job? Who stays? How do companies think about culture, communication, and long-term wealth building? These are some of the questions behind the NCEO's new Recruitment and Retention Survey.

Based on responses from 433 ESOP companies collected between March and April 2026, this report offers one of the most comprehensive looks yet at how employee-owned companies are approaching recruitment and retention.

The findings are encouraging. Eighty-five percent of respondents said employee ownership has had a positive impact on their ability to attract and retain employees. However, the survey also highlighted that while companies see ownership as a competitive advantage, many report that applicants rarely mention employee ownership as a reason for applying. In other words, there may be a gap between the value ESOP companies are creating and the story they're telling about it.

The report explores which recruitment methods companies find most effective, how they communicate employee ownership during the hiring process, what retention strategies they are investing in, and which benefits, workplace practices, and flexible work arrangements they offer.

Like all NCEO survey reports, this research is meant to share actionable insights, including concrete practices, strategies, and ideas that companies can consider adopting. At a time when so many employers are searching for ways to build stronger, more resilient organizations, employee-owned companies have something important to contribute to the conversation. Explore our findings in the full report.