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Lana Smith is the national retirement program manager for contractor Swinerton, based in Concord, California. The opinions are the author’s own.
Almost three decades ago, I was perming my hair when I got a call from a job application I submitted. I was so excited I stayed on the phone. I could feel my head getting hot from the chemicals, but I really wanted this job. As soon as the conversation was over and we had scheduled my in-person interview, I ran to the bathroom. Luckily, my hair survived.
Now I think about that funny moment. Although I was delighted to get the job, I never expected that I would be with the same company, Swinerton, for 28 years. I’ve stayed because of our culture, which boils down to the fact that my colleagues and I own the company.
I didn’t know this when I applied, but soon after I started I learned that Swinerton is employee-owned through an employee stock ownership plan, or ESOP. It is a retirement plan that allows companies to share ownership with employees. It means that as we help the company succeed and grow, it helps us give back. Our hard work pays off in retirement savings that keep growing the longer we stay. This structure, in turn, promotes high standards and constant innovation.
When I started, I was quite young. I didn’t think too much about retirement for myself. Over time, I’ve watched my nest egg grow. While many Americans are unsure when or if they will be able to 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 both of us.
ESOP nationwide and under construction
As Labor Day approaches, I’m sharing my story because there is less than 6,500 ESOPs in the US and only 787 in California. The good news is that construction ranks first for industries with ESOPs: The sector accounts for nearly one-fifth of all plans nationally, behind only manufacturing and professional services.
In the Bay Area, we see troubling headlines showing that high corporate profits are not translating into the long-term well-being of everyday workers. It’s a national problem with the employees they receive lowest share of US economic output since 1947.
Through employee ownership, we can help change things. I have seen how ownership mentality keeps companies high quality and improves the lives of employees.
The effect of ownership
I started at Swinerton as a benefits accountant. As employee owners, we all encourage each other to learn. The leadership has an open door policy and 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 owners gave me the flexibility to take care of him and make midday doctor appointments, while also supporting me in taking on new responsibilities.
Lana Smith
Courtesy of Swinerton
Over time, I moved into a management position and for the past 10 years, I have been leading our national retirement program. It’s amazing to see people retire early and retire comfortably. All employees and owners have the same opportunity, whether we are on a construction team or in an administrative role.
The ownership mentality also makes us a stronger and more advanced company. Every new idea is taken into account and seriously considered. Solutions are shared consistently across departments.
For example, a colleague on another team told me that he had moved to a paperless approval process. I took the idea to my manager, who wasn’t 100% sold, but trusted me to give it a try.
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 apparent during the pandemic. While many companies had to move to electronic processes under pressure, our departments had long-standing processes for remote approval and didn’t go through the paces.
The biggest benefits of ESOPs
I have no doubt that with more ESOPs in construction, and across the country in general, we will see higher quality products and services. I don’t know of many other companies that have been around since the 1880s and are still growing, but Swinerton is one of them. Employee ownership plays a large part in our success.
While there aren’t enough employee-owned businesses to hire everyone I know, I have hope. The Expansion of ESOPs The coalition is building a growing movement of nearly 100 organizations working to increase 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 so much, or that I could help thousands of others grow, excel, and retire with dignity. This Labor Day, let’s help more people have a story like mine. It’s time for all employees to have a bigger share of the wealth and success that our hard work generates.
