Employee ownership bridges the degree gap for workers

The report from the Rutgers Institute for the Study of Employee Ownership and Profit Sharing highlights that non-degree holders at ESOP companies earn an average of $80,091 annually, surpassing the $69,458 average found in non-ESOP roles. This annual advantage of $10,633 persists across diverse demographics, including urban and rural communities, regardless of race or gender.

Beyond immediate wages, these workers report a median household net worth of $93,500, a significant jump over the $79,640 held by peers in standard employment. The findings also underscore a disparity in corporate perks: 95% of ESOP employees enjoy access to both medical insurance and retirement plans, while non-ESOP workers lag behind with significantly lower coverage rates. Adria Scharf, director of the institute, noted that these positions successfully offset the traditional earnings disadvantage tied to the absence of a four-year degree. Stephanie Silverman, CEO of the Employee-owned S Corporations of America, emphasized that professional success should not be gated by a college diploma, suggesting that expanded employee ownership could serve as a broader equalizer in the American workforce.