Employee Ownership – A Key Difference
Employee Ownership
In this time, when many businesses are struggling to keep their doors open, Home-Tech is more than holding its own. What’s the difference between Home-Tech and other companies? Steve Marino, Home-Tech’s energetic Founder and President, says, “The secret is quite simple. Employees own the business.”
Employee Owned Since January 1, 1996
“Home-Tech has tripled in size since we instituted employee ownership,” says Marino, who founded the company in 1981. “We started working on employee ownership in 1995, and it “kicked in” on January 1, 1996.” According to Marino, Home-Tech is the only employee owned company of its type in the state. Given the success Home-Tech has enjoyed, one might expect that others would follow suit. Marino says he thinks he knows the reason they do not. “It can be hard for the owner of a business to give up control,” he explains. “The idea that (the owner) can be out-voted by a board, that employees help select, is not something that appeals to everyone.” He is quick to point out, however, that not all of Home-Tech’s eligible employees choose to become owners. “Not everyone cares to be an owner,” he says. “Some employees are happy to be just that, employees. About half of our employees are involved as owners.”
Why Employee Ownership Works
Steve Marino, Initiated Employee Ownership
First, the concept of employee ownership has made Home-Tech an appealing place to work. “The average seniority of our 130 member workforce is 10 years”, says Mr. Marino, who adds that ownership has been instrumental in retaining talented employees. “I didn’t want to lose some of our best employees. I knew they could become competitors.” Secondly, Marino wanted the employees to have the same drive and enthusiasm for that company that he has. “I think it’s been the perfect model for a service business in southwest Florida.”
A Piece of Their Business
Home-Tech’s stock is privately held. Shareholders, including employee owners, vote every two years to select the seven members of the Board of Directors, chaired by Marino. Employees are eligible to earn stock after three years of employment. Stock awards are then tied to performance, position and length of service. Quarterly dividend payments serve as a bonus. “What I can offer (employees) is a piece of their business,” he says. “When someone is vested, when they own a stake in something, they are more likely to stay. They have the same stake in this that I do. In fact, we don’t call them ‘stockholders’, we call them ‘partners’. Another benefit is transparency. They know exactly what the health of the company is at all times. There are no surprises. And I’m proud to say that we’ve never missed a quarterly dividend payment.”
To say that Home-Tech’s beginnings were “humble” is an extreme understatement. Steve Marino’s entrepreneurship and the idea of employee ownership provided the catalyst for Home-Tech’s ultimate expansion and success. At some point, Marino says he will contemplate retirement. But, that day appears distant. “I still have a passion for this,” he says. “And I really enjoy the people I work with.” Other bosses might refer to “the people who work for me.” That’s the difference. Home-Tech’s President is just one of many owners. And that suits him just fine.
