New Belgium Company Essay

2. Why is it important to engage employees in ownership to enhance quality and efficiency?
On January 17, 2013 New Belgium declared that company’s Employee Stock Ownership Program has obtained the offset of organization shares making it 100% employee-owned. A representative stock proprietorship plan (ESOP) is an operating system that gives an organization's workforce an ownership incentive toward the organization. Employee Stock Ownership Program organizations give their representatives stock possession, regularly at no advanced expense to the workers. Employee Stock Ownership Program, offers, then again, are part of representatives' compensation for work performed. Shares are distributed to workers and may be held in an Employee Stock Ownership Program trust until the representative resigns or leaves the organization. The shares are then sold.

According to the company’s information, “The deal was completed on the 28th of December with a companywide announcement made during the New Belgium’s annual winter retreat on the 14th of January. All 456 employee-owners were present for the celebration. Prior to this deal, New Belgium co-workers held 41% of the company’s shares.” (New Belgium site). This effected company’s efficiency and quality in three main ways: more investments for the company, more incentive on labor and more emphasis on product quality.
Firstly Employee Stock Ownership Program helped company to make more investments. Getting more money, lets company go grow and raise its funds. Afterwards, company spend money on products and machines with better quality. This option allows to have more money for expenses. Moreover, New Belgium would not have money from outside of company. It is important to admit, that having employee-owned plan means getting investments inside of company, from its