Blog
Thanks for calling Palmer Holland. Yes, this is the owner.
October 1, 2024
At Palmer Holland, we are proud to be an Employee Stock Ownership Plan (ESOP) company. This means that when you interact with any of our employees, you are speaking with an owner of the company. This ownership model drives our commitment to excellence, innovation, and exceptional service.
Our ESOP structure means that employees receive ownership units each year based on their contribution to the company. This model aligns everyone’s interests with Palmer Holland's long-term success. It’s not just about today’s performance but how our actions will impact the company’s value years from now.
Our journey began in 1977. Fred Palmer Jr. sold Palmer Supplies, Inc. to the five regional sales managers, marking the beginning of employee ownership at Palmer Holland. Over the years, our employee ownership philosophy has remained steadfast: those driving the company's value should be its owners. This approach has empowered our team, fostering a culture of dedication and high performance.
By 2019, Palmer Holland had grown to approximately 150 employees, with around one-third being owners. We realized that transitioning to an ESOP was the next logical step to enhance our employee ownership model further. The philosophy was the same as before: ownership should be in the hands of the people driving the company's value. If ownership should be in the hands of the people driving the value, did that mean that if you weren’t an owner, you weren’t driving value? That question was an easy “No.” Every employee at Palmer Holland brings value.
Why does Palmer Holland being an ESOP matter to you, our customers?
The different benefits of an ESOP result in unmatched service for you, our customers, as every interaction is with an invested owner of the company.
I don’t think many people would argue with the comment that when you own something, your level of engagement is higher, your motivation to succeed is higher, and your willingness to sacrifice short-term pain for long-term gain is greater.
At Palmer Holland, we focus on value when communicating with our customers. Our employee-owners are genuinely invested in providing exceptional service, going above and beyond to ensure customer satisfaction. This commitment to quality and care is evident in every aspect of our operations. We understand our customers prioritize quality and service- which are both hallmarks of ESOP companies.
Emerging from 2020 and the COVID-19 pandemic, society faced “The Great Resignation,” which highlighted the strength of our ESOP model. While many companies faced a high turnover rate and struggled with efficiency, Palmer Holland maintained a turnover rate below 10%. We even found ourselves in need of a significantly increased headcount. Our employee ownership mindset was crucial to navigate this time and position us for future success.
At Palmer Holland, we encourage long-term thinking. We want every team member to understand how their daily work impacts our share price and, ultimately, their wealth. Our employees don’t trade stock; they accumulate ownership annually and are bought out upon retirement. This ensures that we are always focused on sustainable growth and value creation.
One of the greatest benefits of being an ESOP is the increased financial literacy and employee engagement. We invest in education and training, helping our team understand how their daily work impacts the company’s share price and their own financial future.
Studies have shown that over the last 40 years, wages have remained essentially flat with inflation; however, capital gains have exceeded the inflation rate over that same period. By being owners, our employees can enjoy a higher standard of living and financial security.
Every day, Palmer Holland employee-owners provide excellence to our customers and partners. Ownership heightens engagement, motivation, and willingness to achieve long-term success, which is the driving force behind our outstanding service and commitment to you.
Thank you for being a part of our journey. We look forward to continuing to serve you with the passion and dedication that come from being a proud ESOP company.