Assume your employee owners are genuinely interested in learning how your company makes money. They might not have expressed their interest because they, mistakenly, thought they couldn't understand how to read their ESOP's financial statements. But if you follow the tips below you will make this information easy to understand. We have done this training in several ESOPs. Employee owners are buzzing with excitement at the end of the training because they can see how their efforts contribute to their company's profitability.
Imagine sitting in a dry lecture where the terms COGS; SG&A, Accrual Accounting and Gross Margin are being presented. Likely to tune out? You bet. But then imagine presenting interesting, real world examples that explain the terms. Now your employee-owners will be leaning forward in their seats. Here is one example: have photos of actual employees and a brief job description. Ask employee owners to sort these employees into COGs and SG&A. This will drive home the difference.
Show every employee owner how their contributions show up in the Profit and Loss Statement. Be as specific as you can.
Use interactive activities to drive home the concepts you want your employee owners to understand. People learn best when they are engaged and solving problems. Create actual scenarios related to your company's finances and ask your employee owners to generate answers.
End by asking each employee owner to identify one or more things they can do to make their ESOP more profitable. Check back with them in six months and ask: what did you do and how did it work out.
The strongest ESOP's are the ones with the highest employee engagement. Showing your employee owners how their contributions add to the company's profitability is a powerful way to generate engagement.
