Hardware store is one of 15 top small workplaces in 2008

Jackson’s Hardware Inc., an independent hardware store located just outside San Francisco, was recently chosen from more than 400 applicants as one of the 15 top small workplaces in North America for 2008.

The competition was conducted by the Wall Street Journal and Winning Workplaces, a non-profit organization that helps small and mid-size companies improve their workplace practices.

Participating companies had to employ 500 people or less, be based in North America, have an annual revenue not greater than $200 million and be independent.

Winners were selected through an intensive application and interview process that looked into a company’s employee-engagement efforts, staff turnover, training, annual revenue, and teamwork, among other elements.

President and Chief Executive Officer Bill Loskutoff attributes the hardware store’s selection in large part to the fact that employees own 100 per cent of the company through an employee stock ownership plan (ESOP).

“We’re very competitive in the marketplace and I think having an ESOP is what’s done it,” says Loskutoff.

“The culture here is based on (the fact) that we’re all owners; we all share in the ups and downs of the business and we’ve done this for many years.”

The ESOP can contribute up to 25 per cent at cover payroll for an individual into the plan, depending on how the profitable the business is; in very profitable years that contribution has been close to the 25-per-cent mark, according to Loskutoff.

“Everybody understands that as the company is profitable, the benefit will go into their plan,” says the CEO, noting that Jackson’s provides ongoing education, through a newsletter and other means, about the stock ownership plan and how the company’s success relates to the financial well-being of employees.

The company also aims to motivate workers through an Employee Owner of the Month award, which includes a gas card and $600 towards a weekend getaway and dinner or store purchase.

On top of the stock plan, the company pays 100 per cent of medical benefits for employees and their dependents, which Loskutoff suggests is also a key factor in the company’s success as a workplace.

“That’s a tremendous benefit to be able to provide, with health care as expensive as it is here in the U.S.,” he says, adding that employees understand that the company’s profitability is also important to it being able to continue to provide that benefit package.

The culture of shared ownership is carried through other aspects of the company, as well.

For instance, associates know they have the freedom to approach any of the company’s board of directors, all of whom are also store employees, about any concerns or ideas for change. Because of the company’s small size — just over 60 employees — it’s often possible to test suggestions from the floor, according to Loskutoff.

Any gifts that individual employees might receive are shared among all.

In addition, the company only employs full-time staff, except for a few seasonal workers, which Loskutoff suggests contributes to that culture of shared ownership and commitment to the company.

“We all understand the importance of sharing; sharing the good things and also sharing when things are bad,” says Loskutoff, who adds he would love to see more companies with employee stock ownership plans.

“Especially in the times that we have now, a well-run, employee-owned company is a great way to build wealth for a broad-based group of individuals who may not ever be able to attain it otherwise.”

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