Planning for Our People

George & Lynch, Inc. expands ownership of firm as one method to address workforce development

BY CHRIS BAKER

AS THE PRESIDENT AND CEO of George & Lynch, Inc., one of my favorite events each year is gathering for our Quarter Century Club. Current employees, retirees, and even a few who are working elsewhere, come together for a luncheon and visit with their colleagues. There are usually pictures and stories and I reflect on experiences shared with each attendee. Since I’ve been with this company for over 30 years, those relationships vary. Some were my teachers, or even mentors. Some were my peers and remain good friends. And some I have had the honor to look after as supervisor or company executive.

A form of this tradition is undoubtedly repeated at countless other firms around the world. I recall my father as an employee of DuPont in the 1980s. When he reached the 25-year milestone, it was a big deal. The family photo that was part of the standard package still hangs in my mother’s home. Nearly 40 years later, how much of that culture has changed? Even in the early 90s when I was a ‘youngster’ in the workforce, I recall hearing that the average person held at least ten jobs in their career. I cannot reach that number even if I count selling Christmas trees or watermelons starting from before my middle school days. However, I can count more positions held with this one employer—unskilled laborer included.

The previous paragraphs are background for the focus of this article, but enough about me. Our contracting company has been blessed with skilled, motivated, and loyal employees for generations. Like most firms, we have seen a shift to more transient career paths over the past decade or more. We have an aging workforce—as is common in the construction industry—and our industry is seeing less interest from young talent.

To address those concerns, workforce development has been a pursuit of various organizations, including ABC Delaware. We are planning more formal instruction to supplement on-the-job training that has worked well since our business was formed nearly 100 years ago. But we were not prepared for the Great Resignation that has impacted us and many others. Child care, healthy retirement plans, and a red-hot job market could all be reasons for a higher than normal turnover rate. Even more concerning is the anticipation of more work than the availability of personnel.

One way we are addressing both retention of existing staff and recruitment of new employees (RnR), is a recently executed ESOP. An Employee Stock Ownership Plan (ESOP) provides opportunities for ownership to all employees. Plans can come in various shapes and sizes, certainly too much to discuss here, and you will want to engage an expert to facilitate the process. An ESOP is a qualified retirement plan, similar in some ways to a 401(k). We are keeping our 401(k) plan in place but with the ESOP as an added benefit for employees. Since tenure is a component of our plan, an individual will benefit even more the longer they remain with the company. Not only will it bolster retirement savings, but we are confident it will lead to greater engagement and satisfaction of our members.

You might imagine there are other reasons we pursued an ESOP at George & Lynch, Inc. Honestly, RnR did not initially top the list, though we were mindful of rewarding our employees’ contributions to our success. Now nearly two years since the first ESOP notion— in parallel with COVID-influenced staffing—we believe RnR will differentiate us from competitors and attract employees that want to be part of our culture, today and in the years to come.

Chris Baker is president and chief executive office at George & Lynch, Inc.