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V O L . X X X I N O. X X I V § 2 O C T O B E R 2 0 , 2 0 2 5 16 it happens are super complicated and very technical," Jonsson says. Although day to day operations and leadership remain unchanged, employees are now more engaged in shaping company policies and serv- ing on committees such as a com- munications committee. is involvement has been moti- vating and reinforces progress and growth since everyone shares in the company's success. "I think it 's kind of hard to be against an ESOP. If you're an employee, there's no risk for them, which is so amazing," Jonsson says. "If you go down the partnership route, employees are taking out large part- nership loans, and that's a huge risk, but with the ESOP, there's no liabil- ity that the employees assume. So, if the company does well, the employ- ees do well over the long term." A 100-year agency Blaze Partners' long-term commitment is reflected in its "100 Year Vision," a mission to ensure the company thrives for a century or more by providing exceptional client services and cre- ating positive community impacts. "is is how we become a 100-year agency, by having a really strong team who can continue to guide and lead this organization when the original own- ers are no longer here," Jonsson says. Clients also benefit from the model. ESOP ownership strength- ens retention and ensures continuity of professional services. With lower turnover, Blaze Partners can build deeper client relationships that are expected to last for decades. Reflecting a trend in Maine, Blaze Partners was aware of the ripple effect on Maine's local economy. e team was determined to preserve jobs in Maine and avoid selling to an outside entity that might cut staff or relocate work. "We felt really strongly that we wanted to keep this business in Maine, and the ESOP lets you do that," says Jonsson. "It lets you build a really strong base of talent here. It helps you provide long-term financial stability for your employees, which means long term financial stability for the com- munity, and we just take that role as an employer seriously." Jonsson's advice for other com- panies considering ESOP is to sur- round themselves with knowledge- able advisors who can help navigate the process. While the Blaze Partners ESOP is still new, she is excited about what the future holds, especially for a company that aims to stay in busi- ness for a century. "I've always been excited about the future for Blaze, but the ESOP just makes me that much more excited," Jonsson says. "I feel like we have such a strong leadership team at Blaze, and I don't think we've ever had such a healthier, stronger group of employees. People are just so excited about this. We are able to create an organization that is more than a job, it is a career." S l o a n e M . P e r r o n , a f r e e l a n c e w r i t e r, c a n b e r e a c h e d a t e d i t o r i a l @ m a i n e b i z . b i z P H O T O / C O U R T E S Y O F B L A Z E PA R T N E R S Jenna Klein Jonsson, a principal at Falmouth-based Blaze Partners, says the ESOP process allowed the advertising agency to think long term. O ne of the key benefits of an Employee Stock Ownership Plan is its potential to boost employee retention. Research shows that ESOPs tend to have lower voluntary quit rates and longer employee tenures than non- ESOP companies. In an economy like ours, where workforce shortages are a top issue, that's critical. With ESOPs, once employees become vested in the company's success, the organization's prosperity becomes personal. ey see work less as just a job and more like a place where they can build their careers. But organizations that adopt ESOP structures can only reap those benefits if participants truly understand the ben- efits. at's why good consistent com- munication is critical to any ESOP's success. Here are some key things to help you get the communication right. 1. Open up. Federal law requires ESOPs to disclose the share price, number of shares allocated, and account balances to employees on an annual basis. But it's a good idea to say much more. What metrics drive the com- pany's profitability, and what are the expenses that drag it down? What are the factors that go into the company's valuation? Give your team members concrete examples of how the work they do every day affects the bottom line. 2. Spell it out. Never underestimate the need for explanation. Most people aren't familiar with terms like vesting or valuation, and many haven't had any need to understand the difference between revenues and profits. Technical terms that are parts of a business lead- er's routine vocabulary can sound like a foreign language to everyone else. It can be intimidating for employees to ask what something means in a large group setting, and you want to make sure they understand what key metrics mean in the context of your own busi- ness. Don't leave it to Google or AI; too much can get lost in translation. 3. Communicate early and often: e announcement that the company is becoming an ESOP often comes with a lot of hoopla. But it can be six to 18 months plus before employees receive their first share statements. What's more, those initial statement balances are typically small, because of the initial debt the company takes on as part of the ESOP transaction. It takes time, anywhere from four to seven years, for employees to see their accounts grow to an amount that they can get excited about. It's important to make sure that ESOP participants understand that, just like taking out a mortgage to buy a house, their equity stakes will grow as the debt is paid down. Consider setting up quarterly ESOP meet- ings with employees, folding updates into regular company-wide commu- nications, or forming a committee to support ongoing education. Keep ownership culture front and center, and create space for employees to ask questions. 4. Describe your why. Candor isn't every leader's comfort zone, but the transparency you have in the short term will go a long way towards keep- ing your team intact for the long term. In most cases, a business leader's deci- sion to adopt an ESOP structure stems from a heartfelt desire to set up a suc- cession strategy that retains the com- pany's culture, jobs and local presence. But any change can be unnerving and set off speculation about worst case scenarios. Help employees under- stand the future you envision. Invite them to submit questions and con- cerns anonymously. 5. Get outside perspective. At edu- cation sessions, we find that employ- ees get peace of mind from having a third party answer questions — espe- cially since we're the ESOP trustee that has a fiduciary duty to represent their interests. ey feel more com- fortable asking us questions that they don't want to take to their supervisors. Chris Whitney is a vice president and ESOP client advisor with Portland- based Spinnake r Tr ust. B Y C H R I S W H I T N E Y B Y C H R I S W H I T N E Y Make ESOP communication a success H OW TO » C ONTI NU ED FROM PR EVI OU S PAGE ESOPs [are] simple in concept. It's about transferring ownership to the employees of the organization. However, the mechanics of how it happens are super complicated and very technical. — Jenna Klein Jonsson Blaze Partners

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