We know the importance of feeling like you’re part of a team. That’s why at Hawkeye Electric, we launched the Employee Stock Ownership Program back in 2019. This means we are 100% employee-owned. From day one on the job, employees start accruing company stock that has been building in value every year since.
Employee stock ownership programs (ESOPs) have emerged as a significant way to incentivize and reward employees, aligning their interests with those of the company. Hawkeye Electric’s ESOP stands out as a particularly compelling example, offering considerable financial benefits to our employees.
Zero Cost and Free Retirement Account
Hawkeye’s ESOP is uniquely designed to be entirely cost-free for our employees. This isn’t just financially appealing but allows employees to easily participate. To be eligible to participate in Hawkeye’s ESOP program, you must be 21 years of age or older and complete one year of service with the company.
The program serves as a free retirement account, allowing employees to accumulate wealth over time without any direct investment from their end. It is essentially awarded to you and nothing comes out of your pocket.
Earning Shares Annually
Each year, Hawkeye employees earn a certain number of company shares, typically ranging from 300 to 900 shares per person. This allocation is thoughtfully based on the employee’s W2 wages each year. This method ensures a fair and equitable distribution of shares.
Share Price and Company Performance
One of the unique aspects of our ESOP is the lack of daily fluctuation in share prices. Instead, the share price changes only once per year, based on our company’s overall performance. This reduces daily stress for our employees about stock market volatility and allows them to focus on the long-term growth and health of the company. Currently, Hawkeye’s share price is at $20.94, with expectations to rise to at least $25.60 by 2025.
Vesting Schedule
Our ESOP includes a six-year vesting percentage schedule, ensuring long-term commitment from employees. It starts with 0% in the first year and gradually increases by 20% increments to full (100%) vesting in the sixth year. This structure encourages our employees to stay and grow with our company.
Profit Distribution
An impressive aspect of Hawkeye’s ESOP is that 100% of our company’s net profits are returned to our employees. This not only helps boost employee morale but ensures that the success of our company directly benefits those who contribute to it.
Additional Financial Benefits
The ESOP allows our employees to earn extra money on top of their salary, specifically aimed at enhancing their retirement savings. In the first year of employment alone, this can amount to an additional $7,000 to $21,000. This benefit can be a significant motivator for employees to perform at their best.
Employee Ownership and Company Pride
Becoming an employee-owner through Hawkeye’s ESOP brings a sense of pride and a deeper level of engagement with our company. Employees are not just working for a paycheck but are directly invested in Hawkeye’s success and growth. An ESOP can foster a strong sense of community and loyalty, which is invaluable for company culture.
Hawkeye Electric’s ESOP is more than just a financial program; it’s a testament to our commitment to our employees. By offering shares at no cost, aligning share price with company performance, and distributing profits back to employees, we’re not only rewarding our employees but being an employee-owned business fosters a powerful sense of ownership and belonging. It’s a proven method that creates a culture where success and growth are shared and celebrated together.
To learn more about Hawkeye Electric’s ESOP program and our benefits for employees, visit https://hawkeyeelectric.com/careers. We’d love to have you as part of our team!