Why More Construction Companies Are Choosing Employee Ownership

Business Advisor

Becoming a worker cooperative lets employees lead the next chapter of a company’s legacy

For many business leaders, the success of their companies is reliant on who they employ. The stronger their teams are, the better their work will be. At people-focused construction firms, this is a good reason owners opt to convert their organizations into worker cooperatives ahead of their retirement. But it’s not the only one.

What Is a Worker Cooperative?

A worker cooperative is a business owned by its employees. Worker-owners share in company profits, elect leadership or a governing board, and participate in major business decisions while day-to-day operations remain under designated managers.

John Abrams is co-founder of Abrams + Angell, a consultancy based in West Tisbury, Mass., that coaches small business owners on succession, finance, and strategy. He is also author of From Founder to Future: A Business Road Map to Impact, Longevity, and Employee Ownership and Companies We Keep: Employee Ownership and the Business of Community and Place.

Abrams spends a considerable amount of time helping companies become worker cooperatives. Unsurprisingly, he’s a big fan of the model.

“A worker co-op can preserve your business [because you’re] not selling to an outside entity like a strategic buyer or other entity that might dismantle or otherwise disrupt the business,” Abrams said. “And it rewards the employees for their role in helping you build the business.”

The Benefits of Worker Co-ops

Transitioning into a co-op model is much more than a feel-good gesture toward dedicated employees. As partial owners of the business, they participate in making the decisions that make a direct impact on their lives as well as the organization, Abrams pointed out. And of course, they share a portion of the profit.

“For employees, there are huge benefits,” Abrams said. “For the business itself, a successful company converting into a worker co-op may find an increase…