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MANHATTAN, IL — After 10 years of growth and success, Manhattan Mechanical Services has announced its transition to an Employee Stock Ownership Plan (ESOP), completing its first transaction by transferring 20% of the company to its employees.
“Our team’s hard work and dedication made this transfer of ownership the obvious decision,” explains President Joe Harkness. “Our company’s success is reflected in its commitment to safety and high-quality work. Now our employees are officially owners of Manhattan Mechanical.”
According to Harkness, with safety and people as core values of the company, the integrity of the employees at all levels remains unmatched, creating a vested interest in the success of Manhattan Mechanical.
“Our goal is to increase shareholder value,” explains Harkness, “With ESOP, every employee is an owner, which presents the opportunity for wealth creation and results in an increased price of ownership.”
Why an ESOP?
According to The ESOP Association, offering employee ownership through allocated shares of company stock promotes worker retention, employee motivation, and workplace productivity. With ESOP, employee ownership improves American competitiveness and maximizes human potential.
As a qualified retirement plan, ESOP buys, holds, and sells company stock for the benefit of employees. This ownership stake will slowly transition the company’s leadership over time, rewarding the team through the company’s success.
A recent survey conducted on behalf of the Employee-Owned S Corporations of America shows that ESOPs prevented employees from financial hardships during the recent COVID-19 pandemic, offering employees increased financial security. An ESOP incentivizes employees, as stakeholders, to create opportunities for continued success while also strengthening the relationships the merit shop company holds.
“Customer service is readily cultivated in an ESOP environment,” says CEO Mike Uremovich, “Our team is passionate and proud of the work we produce, which results in the success of our industrial partners.”
Rapid Growth
Since its inception in 2011, Manhattan Mechanical has experienced astronomical growth, expanding from a mere 15 employees to the current 200 personnel. In addition, the company’s growth is reflected not only in the success of its business endeavors but also in the team’s camaraderie.
“I believe the key to our success and longevity is that our company is a big family and a cohesive team,” explains Uremovich, “Everybody is pulling for the common good of the team as a whole.
“Manhattan Mechanical invests in its people with our NCCER apprenticeship program and leadership-development programs,” he continues. “We invest more in our people than any other contractor in our industry, and now our employees have the opportunity to own the very company they have grown.”