Employee Ownership: Investing in People, Businesses, and Community

23 Mar 2026

News

For employee-owners, work is no longer just a job that pays the bills or an obligation they show up for out of necessity. When long-term financial security and retirement outcomes are directly tied to a company’s success, involvement and effort take on deeper meaning.

Members of employee-owned companies depend on one another to ensure the success of their organization because the more successful their company is, the more value is created for each employee’s future. This dedication, commitment, and trust in each other creates a culture like no other. As Tammy Miller, 39 th Lt Governor of ND and retired CEO of Border States put it, “All employee-owners are sharing in the wealth that they help to create.” According to Miller, this shared ownership mindset contributes to stronger culture, better customer service, and the ability for employees to build meaningful personal wealth over time.

Employee Ownership: What it is and Why it Works

At its core, employee ownership is a business model that gives employees a financial stake in the company they work for. Rather than ownership being concentrated in the hands of one individual or a small group of shareholders, equity is shared across the workforce. In practice, this often takes shape through Employee Stock Ownership Plans (ESOPs), cooperatives, or other shared-ownership structures. While the mechanics vary, the goal remains the same: align the long-term success of the business with the people doing the work every day.

What employee ownership is not, however, is a shortcut to instant wealth. It is a long-term investment that rewards consistency, commitment, and collective performance rather than quick gains. The real value of ownership builds over time, becoming a meaningful part of an employee’s retirement or financial security.

In an ESOP, the most common employee ownership structure, employees typically earn ownership over time as part of their employment, usually at no cost to the employee. Shares are allocated based on factors like tenure and compensation, gradually building value as the company grows. Other models may allow employees to buy in directly, investing alongside their peers.

“Broad-based employee ownership is the opportunity for all individuals who work at a company to have equity in the company they work for, and at a minimum, to share in the profits they help produce,” explained executive director of the Employee Ownership Expansion Network, Steve Storkan.

Storkan went on to clarify, “Pure employee ownership is beyond profit sharing, it’s actual ownership in the company.” Regardless of position or title, all employees have the same opportunity to receive equity ownership shares in the organization they help build.

Workforce Challenges and Room for Improvement in Bismarck-Mandan

Workforce attraction and retention continue to be among the most pressing challenges facing businesses in Bismarck-Mandan. According to Project Equity’s “Silver Tsunami” research, which examines the growing wave of business owners nearing retirement, approximately half of the businesses in Burleigh and Morton counties are owned by individuals ages 55 and older. Collectively, those businesses employ more than 10,000 people and represent nearly $500 million in payroll.

With aging employers quickly approaching retirement, many of these businesses will soon face complex decisions like selling to outside buyers, relocating, or closing their doors altogether. This means the risk of losing good-paying jobs, funds, and local leadership that communities like Bismarck-Mandan have spent decades building. For residents, this challenge extends beyond individual businesses. When local companies leave, the ripple effects are felt throughout the community, from reduced economic activity to fewer investments in schools, nonprofits, and civic leadership.

Employee ownership offers a locally rooted solution to filling potential gaps within local workforce trends. By giving employees a stake in the companies they help build, ownership creates a powerful incentive to stay, grow, and lead from within. Research consistently shows that employee-owned companies experience lower turnover and greater stability. “Employee-owned companies survive at a higher rate during economic downturns than non-employee-owned companies,” explained Storkan.

Beyond stability, employee-owned companies often outperform their peers. Storkan noted that they typically offer higher benefits, stronger productivity, profit-sharing opportunities, and higher sales than comparable firms in the same industry. He attributes much of this difference to culture. When employees share in the profits and equity they help create, accountability increases, engagement deepens, and workplace attitudes shift. Employee-owned businesses are also more likely to remain locally owned, reducing the likelihood of selling to outside buyers and keeping ownership and decision-making close to home.

Ownership as a Tool for Retention and Leadership Development

As the workforce ages, employee ownership strengthens retention and leadership development by rewarding longevity, building wealth over time, and motivating employees to invest in their company’s future.

JLG Architects, a local, 100% employee-owned firm, provides a strong example. From the beginning, JLG’s culture focused on creating opportunities for talented professionals to build long-term careers in North Dakota without feeling the need to leave the region to find growth. CEO of JLG Architects, Michelle Allan explained that the ESOP structure proved to strengthen that mission by offering both financial opportunity and career longevity, helping combat regional “brain drain” while keeping talent rooted locally. “The biggest impact of becoming employee owned was the commitment to (local) growth,” said Allan.

According to A Comparative Study on U.S. Gen Z & Millennials: ESOP vs. Non-ESOP and Financial Security, approximately 86% of ESOP employees view their job as a long- term career. Factoring both long-term wealth investments and the positive company culture that exists from sharing equal equity with your coworkers, employee-owned organizations are positioned to thrive long-term.

“It reinforces the importance of creating an environment where people are empowered to think and act like owners and understand how their decisions impact the broader organization,” explained Tom Behm, Director of Construction Service at JLG Architects. “It’s definitely harder to leave a business when you’ve been truly invested in its success.” Behm describes how employee ownership shaped his leadership skills by emphasizing accountability, transparency, and strong team development.

“I believe when employees have an owner’s mentality, they feel more connected to the company’s core values and purpose as they understand the actions they take directly affect the financial performance of the company, which in turn drives the value of the ESOP. This direct connection results in a stronger commitment to the company’s success.” – James Landenberger, Bartlett & West

Ownership and succession: Keeping Business Local

Strong retention creates a smoother path for succession, helping ensure businesses remain locally owned and operated as leadership transitions occur. In many communities, retiring owners face limited options that often include selling or relocating which are choices that can disrupt jobs, culture, and local economies. Storkan explained that ESOPs keep ownership in-house, preserving company culture and quality through shared investment in success. As older employee-owners retire, ownership will remain within the walls of the company, and the business is apt to remain unphased by transition.

For JLG Architects, legacy and succession have long been a core value. Even before transitioning to an ESOP, the firm prioritized long-term sustainability. “Becoming an ESOP aligned to the vision of our company of becoming a legacy organization,” said Allan. The transition to becoming an ESOP ensured the company would live and thrive beyond its original ownership structure.

This legacy and sustainability aspect works for an ESOP because employee-owners have a stronger shared understanding of success. “When working for an employee-owned company, an ESOP can provide a much smoother transition when individual owners retire, keeping the business, profits, and jobs local,” said James Landenberger, Senior Project Manager and Water Recourses Delivery Leader for Bartlett

Regional Manager at Hebron Brick Supply, Sue Blair, added that being an employee-owner makes her work feel more meaningful because she knows she is contributing to the long term success of something she has a personal stake in. Blair shared that the sense of shared ownership continues to play a large role in her desire to stay in her role and build a future with Hebron Brick Supply.

The Community Impact of Employee Ownership: When Employees Win the
Region Wins

Employee ownership also enhances how businesses play a role in community development. Tammy Miller emphasized that ESOPs support long-term regional prosperity by preserving local businesses and contributing to schools, churches, and nonprofits, helping stabilize the communities they serve. Steve Storkan added that employee-owned companies are often more engaged in charitable work and community involvement which reinforce stronger relationships between businesses and the communities they operate in.

Landenberger echoed this perspective, noting how employee-owner’s vested interest in their company’s success leads to stronger community involvement. Equally important is the leadership capacity employee ownership creates. When employees think like owners, they naturally connect their daily work to client success, company growth, and long-term community impact. That mindset builds trust, strengthens performance, and helps locally owned firms stand out in competitive markets which benefits not only the business, but the region it serves.

“Employee ownership deepens my sense of pride and responsibility in the work I do. Knowing that the products we supply and the projects we deliver become visible, lasting parts of the community encourages me to hold myself to a higher standard of quality, care, and accountability. I approach my work with the understanding that it reflects not only the company, but also me as an owner, which drives me to ensure our work is done thoughtfully, responsibly, and with long-term impact in mind.” – Sue Blair, Hebron Brick Supply.

“By keeping wealth and jobs local, employee-owned companies help to build more stable and resilient local economies. At the recent Bismarck Mandan Chamber EDC State of the Cities, the keynote speaker, Michael Shuman mentioned Four Rules of Successful Economic Development. The very first one he listed was for companies to Maximize Local Ownership. How better to do that than through an employee-owned local ESOP Company whose growth and success directly benefits every employee owner and their communities.” -James Landenberger, Bartlett & West

How the Bismarck Mandan Chamber EDC is Spreading Awareness

Despite its benefits, employee ownership remains unfamiliar to many businesses. Education and awareness are key. Organizations like the Employee Ownership Expansion Network (EOXN) and leaders such as Steve Storkan and Tammy Miller play an important role in expanding access to resources, leadership planning, and peer learning nationwide.

One of the most important aspects of this is connecting businesses to resources, leadership planning, succession planning, networking, and connecting members of the working community. Storkan explained how locally, the Bismarck-Mandan Chamber EDC serves as a connector by bringing businesses together, creating space for education, and facilitating conversations around succession planning and employee ownership. Through workshops, articles, events, and networking opportunities, the Chamber EDC helps business leaders explore whether employee ownership is a viable fit.

Michelle Allan emphasized that awareness is essential. By connecting businesses to ESOP resources and networks, the Chamber EDC supports adoption, strengthens retention, and helps keep businesses and opportunity local. Increasing understanding of employee ownership is one way the business community can work together to keep moving business forward.

Learn More about Employee Ownership Today

For business owners, leaders, or employees interested in learning more about whether employee ownership or an ESOP model could be the right fit, a growing number of resources are available. Organizations such as the Employee Ownership Expansion Network (EOXN), Project Equity, and the Bismarck-Mandan Chamber EDC offer education, guidance, and connections to experts who can help businesses explore ownership transitions, succession planning, and long-term workforce strategies. Whether a company is beginning to think about retirement planning, talent retention, or keeping ownership local, these resources provide a practical starting point for understanding how employee ownership can support both business goals and community impact.

The North Dakota Center for Employee Ownership (NDCEO) was incorporated on
December 29, 2025, has established a board of directors, and received a $10,000 grant
from EOX. The NDCEO is expected to be operational mid-year and will be a resource
for unbiased information about employee ownership.