SANTA ANA, Calif.--(BUSINESS WIRE)--This past June, Financial Business Group Holdings (FBG), a financial services conglomerate, became an employee-owned company. The new Employee Stock Ownership Plan (ESOP) covers its 85 person employee base over four company brands. “We’re just a few months into the program and our employees are still excited and learning about the benefits of being 100% employee-owned,” says Aberash Asfaw, President of FBG subsidiary Cachet Financial Services.
In a tribute to the incredible spirit of employee ownership, FBG along with The ESOP Association and the employee ownership community, are celebrating Employee Ownership Month throughout October. Employee Ownership Month is an opportunity for ESOP companies across the U.S. to educate employee owners and the public about the tremendous benefits of ESOPs.
"Employee ownership helps strengthen a company’s organizational infrastructure by creating employee buy-in. The ESOP will equally benefit our employees by providing additional retirement benefits that go beyond our standard 401(k) program,” says Micheline Chabana, President of FBG’s payroll related subsidiaries - Payroll Tax Management, Inc., SBS Payroll, Inc. and Time Rack™.
The National Center for Employee Ownership (NCEO) has several infographics that explain the benefits of an ESOP and here are a few highlights:
- ESOP companies are 25% more likely to stay in business
- ESOPs tend to have an increase in employee productivity due to the reward of additional financial and retirement benefits
- ESOP companies’ productivity tends to improve 4% to 5% on average in the year an ESOP is adopted
- Employees at ESOP companies have 2.5x greater retirement accounts
Although the numbers vary by organization, NCEO estimates that there are approximately 7,000 ESOPs in the U.S. with 13,500 employees while the ESOP association estimates its closer to 10,000 covering 10.3 million employees or 10% of the private sector workforce.
About Financial Business Group Holdings:
Our flagship business, Cachet Financial Services, was founded in 2001 followed by our subsidiaries Payroll Tax Management, Inc., SBS Payroll, Inc. and Time Rack™. FBG is a 100% employee-owned firm and provides a variety of payroll related software, systems, and services to the payroll industry and employers nationwide. Our diversity and expertise give the FBG family of companies the ability to efficiently navigate and respond quickly to trends in the market. For more information, please visit our websites: www.fbgholdings.com, www.cachetservices.com, www.sbspayroll.com, www.timerack.com, and www.payrolltaxmgmt.com.