How Employee Ownership is Combatting Dropping Employee Engagement and Morale
A recent report by Gallup highlights a disturbing trend in the US labor market. They show that 50% of employees were disengaged in 2023, causing $8.8 trillion in lost productivity. As a result, companies are looking to more effective ways of engaging and motivating their employees that go beyond pizza parties and slogans. Inc Magazine recently published an article titled “How Employee Ownership Becomes Employee Engagement.” The author cites examples demonstrating how ESOPs and communities of practice better motivate and engage employees by fostering collaboration and innovation, and by providing the autonomy and flexibility needed for employees to pursue their professional passions.
The ESOP Advantage in the BPO Industry
ACT has experienced first-hand the benefits of converting to employee ownership and it has paid dividends for company growth and performance. As the largest ESOP in the Business Process Outsourcing (BPO) Industry, Employee Experience is at the center of our business strategy. After converting to the ESOP model, ACT saw employee attrition drop by 31%. Moreover, as a 100% employee-owned company, our employee owners have a personal interest in delivering value to our clients, and their motivations are uniquely aligned to our clients’ success. As a result, in the past few years ACT has experienced double-digit revenue growth and rapid expansion while many in the BPO industry experienced declining revenues.
Central to this transformation is the profound impact that employee ownership has on the performance of BPO firms, particularly on contact center staff who play a pivotal role in client interactions.
Client Benefits of Working with Employee Owned BPOs like ACT:
The adoption of ESOPs by the BPO industry brings a host of benefits to their clients. Below are examples of client benefits from our observations at ACT:
- Enhanced Service Delivery:
ACT employees’ motivation is uniquely tied to our client’s goals. Because they are shareholders in our business and benefit directly from creating value for our company, they are driven by a commitment to excellence, resulting in higher service quality. Clients benefit from accurate, reliable, and consistent service, ensuring their operations run smoothly and efficiently. - Higher Customer Satisfaction:
ACT’s employee owners are more motivated to deliver exceptional service and to ensure customer satisfaction. Further, lower employee turnover retains domain expertise and client relationships, such as those cited in the introduction of this blog. - Competitive Advantage:
Brands with superior customer experience bring in 5.7 times more revenue than competitors that lag in customer experience. ACT can uniquely help you achieve superior customer experience. Being 100% employee owned, our employee owners have a vested personal interest in delivering the best client outcomes. Our “ownership culture” means they are accountable and empowered to resolve customer issues and go beyond the call for every interaction. - Stronger Client-Provider Relationship:
Unlike the typical top-heavy BPOs, ACT has eliminated unnecessary overhead by giving you direct access to your program leadership and removing P/L responsibilities from Operations. This unique approach, combined with the fact that our leaders are shareholders in the business, keeps our team focused on delivering value to our clients, exceeding SLAs, and quickly responding to changing needs, while also ensuring complete transparency into project performance. As a result, our client tenure is 3x the industry average. - Proactive Issue Resolution:
The sense of ownership among ACT owner employees results in a culture of proactive problem solving. When combined with our delayered organizational structure and removal of P/L responsibilities from operations, our leadership is empowered to be nimble and agile in responding to our client’s quickly changing needs. - Tailored Solutions:
ACT solutions are more flexible, and our employees are empowered (and motivated) to customize solutions to meet the unique needs of their clients. This tailored approach ensures that the services provided align perfectly with the client’s goals and objectives.
Are you ready to transform your outsourcing experience?
Explore the benefits of working with an Employee Owned BPO like ACT. Let’s discuss how our ESOP model and commitment to excellence can elevate your service delivery, enhance customer satisfaction, and give you a competitive advantage in your industry. Contact us today to initiate a conversation about your unique business needs.
