Lana Smith is the national retirement program manager at contractor Swinerton, headquartered in Concord, California. Opinions are the author’s own.
Nearly three decades ago, I was perming my hair when I got a call from a job application I submitted. I was so excited that I just stayed on the phone. I could feel my head getting warm from the chemicals, but I really wanted this job. As soon as the conversation ended and we had scheduled my in-person interview, I ran to the bathroom. Thankfully, my hair survived.
I think about that funny moment now. While I was thrilled to get the job, I never expected I’d be at the same company, Swinerton, for 28 years. I’ve stayed because of our culture, which all comes down to the fact that my colleagues and I own the company.
I didn’t know it when I applied, but soon after starting I learned that Swinerton is employee-owned through an employee stock ownership plan, or ESOP. It’s a retirement plan that lets companies share ownership with employees. It means that as we help the company succeed and grow, it helps us back. Our hard work gets returned to us through retirement savings that keep growing the longer we stay. That structure, in turn, fosters high standards and constant innovation.
When I first started, I was pretty young. I wasn’t thinking too much about retirement for myself. Over time, I’ve watched how my nest egg has grown. While many Americans aren’t sure when or if they can retire, I feel confident about my future. My son has disabilities and will live with me for the rest of my life, and my ESOP account provides financial stability and security for us both.
ESOPs nationally and in construction
As Labor Day approaches, I’m sharing my story because there are fewer than 6,500 ESOPs in the U.S. and just 787 in California. The good news is, construction ranks near the top for industries with ESOPs: The sector represents nearly one-fifth of all plans nationally, behind only manufacturing and professional services.
In the Bay Area, we see worrisome headlines that show high corporate profits aren’t translating into everyday workers’ long-term well-being. It’s a national problem with employees receiving the lowest share of America’s economic output since 1947.
Through employee ownership, we can help turn things around. I’ve seen how the ownership mindset sustains high-quality businesses and enhances employees’ lives.
The ownership effect
I started at Swinerton as a benefits accountant. As employee-owners, we all encourage each other to learn. Leadership has an open door policy, and it makes you comfortable to keep asking questions and expanding your skills. I became a single parent when my son was about two years old, and my fellow employee-owners gave me the flexibility to care for him and make mid-day doctors’ appointments, even as they supported me in taking on new responsibilities.
Over time, I grew into a management role, and for the past 10 years, I’ve been leading our national retirement program. It’s incredible to see people retire early and retire comfortably. Every single employee-owner has that same opportunity, whether we’re on a construction crew or in an administrative role.
The ownership mindset also makes us a stronger, more forward-thinking company. Every new idea is taken into account and considered seriously. Solutions are shared consistently across departments.
For example, a peer on another team told me she had transitioned to a paperless approval process. I brought the idea to my manager, who wasn’t 100% sold, but trusted me to test it out.
I showed how we could save time and store our documents more efficiently. It became the standard in my department, and I paid it forward by teaching another team. The true value became evident during the pandemic. While many companies had to transition to electronic processes under pressure, our departments had longstanding processes for remote approval and didn’t skip a beat.
The bigger benefits of ESOPs
I have no doubt that with more ESOPs in construction, and in general throughout the country, we’d see higher quality products and services. I don’t know too many other companies that have been around since the 1880s and are still growing, but Swinerton is one of them. Employee ownership has a big part to do in our success.
While there aren’t enough employee-owned businesses to hire everyone I know, I remain hopeful. The Expanding ESOPs coalition is building a growing movement of nearly 100 organizations working to grow employee ownership in California and beyond, and I’m proud to add my voice to their effort.
Twenty-eight years ago, I answered a job application call while perming my hair. I had no idea it would change my life this much or that I’d get to help thousands of other people grow, excel and retire with dignity. This Labor Day, let’s help more people have a story like mine. It’s time all employees got a bigger slice of the wealth and success our hard work creates.
