Sharing Is Caring: Employee Stock Ownership Plans and Employee Satisfaction in US Manufacturing

Do employees fare better in firms they partly own? Examining workers’ reviews of their employers on Glassdoor, the authors compare employee satisfaction between firms in which workers own company shares through an employee stock ownership plan (ESOP) and conventional firms in which they do not. Focusing on establishments in US manufacturing, the authors find employees report greater satisfaction in firms with ESOPs overall and with specific job attributes such as culture and work–life balance. The satisfaction premium associated with an ESOP is greater when the ESOP is collectively bargained or employees own a larger stake of firm equity. Employee satisfaction thus differs by ownership arrangement.