To kick off Employee Ownership Month, Corporate Services Manager Leslie Blas shares all about Access Sciences’ Employee Stock Ownership Program (ESOP) – what it is, how it works, and how being an employee-owned company benefits everyone.

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Episode 16: Employee Ownership Month with Leslie Blas

Julia:

Welcome to Access Answers. So, for those of y’all who don’t already know, Access Sciences is an employee-owned company and October is actually Employee Ownership Month. So, we’re going to be celebrating that, and this episode’s podcast guest is going to help us kick that off.

Angela:

Yay! Leslie, my dear friend, and Corporate Services Manager for Access Sciences. Yay, we’re so excited to have you on our podcast this month.

Leslie:

Hey ladies, thanks for having me on this afternoon. It’s great to be able to be here and talk with you guys about the ESOP. I’m excited to be here.

Angela:      

So, October is Employee Ownership Month.

Leslie:

It is.

Angela:  

And also, your birthday month. So-

Leslie:

It’s my birthday. Yes.

Angela:    

Should we sing happy birthday, or should we spare the audience?

Leslie:

Let’s skip the singing happy birthday. Yeah, no, I don’t have the best singing voice.

Angela:      

Tell us where Employee Ownership Month came from.

Leslie:

I don’t know how they selected my birthday month for Employee Ownership Month, but I think it’s a standard throughout the entire industry as we go to conferences and we meet with other organizations, everyone just uses the month of October to celebrate it. So, I don’t think that there’s anything real, hard fast about, hmm, October sounds like a great time to celebrate employee ownership. Maybe the fall weather and pumpkin spice things and stuff like that. Yeah. I don’t know.

Angela:   

So, I guess we should start by talking about, what even is employee ownership? What does that mean? What does that look like for the employer, for the employee? Tell us a little bit about it. Give us the 101.

Leslie:

So, in 2010, the founder of our company, Janice Anderson, believed it would be great for the employees to share in the success of our company in a tangible way. So, Access Sciences created an ESOP for the company, so that was in about 2010. So, we’ve been an employee-owned company for a little over 11 years now. So that was kind of, it was just a, an orderly way for the executive team to turn over ownership to the employees over a length of time. So, we’ve just kind of been working towards this goal for quite some time now.

Julia: 

What are the main benefits of an ESOP?

Leslie:

Well, I mean, it’s definitely a way for employees to build the retirement wealth over a long period of time. So, it’s kind of an income that’s almost kind of… You don’t get a benefit from it right away, until you get towards retirement age or after you’ve left the company. But the longer you stay with the company, the bigger your account gets. So, other than a financial benefit, you’re also benefiting the company too. So, there’s reasons why you would enjoy being part of an employee-owned company. I mean, there’s example that we can give of employees giving back to the company, supporting our mission statement, the things that we’ve defined as a company, our core values, delivering exceptional service and those types of things. So, in addition to it being a company of benefit, the employees also have a responsibility as well to make the most out of being employee-owned company.

Angela:    

So, what is it exactly that we own as employees?

Leslie:

Well, we own shares of the company. So, the shares are actually given to us, it’s not something that we ever have to contribute to. The company actually gives us those shares. So, it’s just a hundred percent employer financed and basically, you’re allotted a share, and the allotment is… We go through in an allocation process every year. And it’s kind of in a propor… It’s in proportion, that is covered in your compensation for that year of the plan year. So, it includes like regular pay, holiday pay, PTO bonuses, those types of things. So, that’s how the allocation process works. So that is all taken into consideration.

Angela:  

And we’re a private company, and so just so everyone understands, it’s not like we’re talking about trading shares on the stock exchange or-

Leslie:

No, no. It’s all privately held within the company, within a trust. So, our ESOP is held within a trust and our plan trustees are Janice Anderson and Steve Erickson, and Sondra Ludwick is our plan administrator. So, a lot of the bigger decisions about, for example, who we’ll use for evaluation and those types of things, those are what the plan trustees, those are the decisions that they make. And then, Sondra just kind of administers it at the company level.

Julia:  

So, I’m sure people get really excited about it, when they’re applying for a job at Access Sciences, and they see that we have this program available on our website. What are the eligibility requirements for an employee to join?

Leslie:

Okay. So, to be eligible for the ESOP program, you have to be at least 21 years old. So, in order to have it as a benefit, you’re over 21, you have worked a thousand hours in the preceding 12-month period of the plan year. So, you have to work a thousand hours and you also have to be employed on December 31st of that plan year. So, just, there’s a certain amount of hours that you have to put in and, it’s in within that plan year. And so… And there is a vesting schedule, so, before you’ll be fully vested in at six years. So, your first year, you’re really not eligible, you’re working your hours, you’re working your way up to your thousand hours. And then, so… And your second year, then you become 20% vested, similar to our 401(K).

And then at three years, you’re 40%, four years and 60%, and so on. And then by your sixth year, you’re 100% vested in the ESOP. It is a nice little perk. And so, it’s in addition to our 401(k). One of the interesting things is, most employee-owned companies don’t have a 401(k) as well. And we’re kind of unique in the sense that, we do have an ESOP that the company is gifting to us. And then, they all also contribute to our 401(k), so a lot of companies don’t do that. So, that is an extra, nice little perk that we get. Company match on our 401(k).

Angela:    

What does it look like to receive distributions?

Leslie:

So, to get your distribution, every year we go through evaluation, our company gets evaluated. And, so at that time, then they go through evaluation period, and they’ve taken things into consideration, such as the financial health of the company and all kinds of interesting financial stuff that we probably don’t think about every day. But then after they’ve set a value, then we get allotted shares, and then we get our certificates annually. And I think that’s kind of a fun time, because then you can see how your shares have grown in the past year. I know for me, it’s kind of like a little exercise, I get my certificate and then I go home, and I get into the safe and I pull out all my other ones and I treat them like this rule, like I would… My Birth Certificate or my Baptismal Certificate or something.

But I pull them all out, and I look at them and I see the growth over, the 11-year period, when I got my first one. And now here we are 11 years later, and I’m… Look at that number and I’m like, wow, that number did grow in 11 years. So that’s, I mean to me when I’ll look at that certificate, and then I hear the executive team talking about, how we’re doing as a company and those types of things.

Angela:     

Who determines the valuation of the company?

Leslie:

We have a valuation company that is selected by the trustees of the company, it’s an independent, qualified valuation firm. That’s external, not related to Access Sciences. And they come in with an objective view and, look at the company and look at different things. Like they research the industry that we’re in, then which we operate and take all that into consideration. The financial health of the company, operational data, they meet with the executive team and find out as much as they can about the company before they make that valuation.

Julia:

What are some other companies that are also employee-owned that some people may know?

Leslie:

Some of the more common ones that are out there, Julia, that, I mean, I’ve heard of – Publix grocery stores, they’re on the east coast. I know when I’ve been in Florida and in North Carolina, I’ve done some shopping at Publix. Bob’s Red Mill, I mean, we see that every day at our grocery stores, whenever we’re shopping-

Angela:   

That’s oatmeal, I eat every day.

Leslie:

Oatmeal, Angela eats the oatmeal. There you go. They have organic food products, a lot of net based products, a gluten free type product. And a lot of people are shopping and using those types of products these days. So, yeah, I would’ve never known that they were an employee-owned company, until recently… Also, Herman Miller, Herman Miller office furniture and home furnishings. Sondra and I were meeting with some furniture vendors, and Herman Miller was one of the companies that came up and they are also an employee-owned company. So yeah, Herman Miller, Bob’s Red Mill, Publix are few of the more common ones that I think people hear more of every day.

Angela:     

So, you guys were looking at office furniture?

Leslie:

We are looking at office… We’re talking with vendors, because as most everybody knows, we are moving in January. I think that’s… I’ll say January. But we’ll be moving up to the third floor in our same office building. So, we’re getting ready for that move.

Julia:  

I’m excited.

Angela: 

Exciting.

Leslie:

Yes, it is getting exciting.

Angela:  

Okay. So, Leslie, I believe you attended virtually an ESOP conference last week?

Leslie:

I did. I did. So, a group of us attended the NCEO Fall Forum. And so, we were able to participate in several different sessions over a three day period.

Angela:  

Did you have any major takeaways or any aha moments?

Leslie:

Aha moments. So, one of the sessions that I sat in on was, running board meetings. And, as a new member of the board, our board of directors, as assistant secretary, it was really refreshing to see that our board is actually doing a lot of the things that they were suggesting on how to run meetings. And so just some of the general things that they were talking about, it was very refreshing to see that we’re already doing some of that stuff.

Angela:   

Oh, fun. Robert’s Rules of Order, I’m guessing.

Leslie:

Well, that’s kind of the minutes, but just… And communicating with your board and how you’re sharing information, and those types of things, we’re already doing a lot of that. So, it was nice to see that.

Angela:  

Awesome.

Leslie:

Mm-hmm.

Angela:       

What would you say to someone that was maybe looking for a job at Access Sciences? What would you say to them about the ESOP?

Leslie:

Well, again, it is a long term… It’s a benefit you’ll see over a period of time. It’s not something you’re going to see right up front, in your paycheck, every pay period. But it is nice to know that when you’re planning for your future, it’s something that you’ll have out there, that’s there and something that’s building and growing as you contribute to the growth of our company.

Julia:  

Do we have how any current or former employees who are starting to see the benefits?

Leslie:

We do, we have some employees who are at the age where they’re starting to receive distributions. So, there are people who are receiving distributions, because they’ve become of the age, to get that diversification opportunity. And then, there are some people who, have left the company and once they’ve separated for over five years, then you start seeing a distribution, if you have a certain amount in your account or that type of thing. So yeah, we are… Again, that starts at the, probably the sixth year. Because by that time everyone’s, either vested in or they’ve separated from the company at that point. So, yes, we are at the point when we’re having distributions and diversifications and those types of things.

Angela:   

Do you think Access Sciences will always be an ESOP?

Leslie:

Yeah. As far as being an ESOP and continuing to be an ESOP, I would have no reason to think that the executives would want to change the way we’re operating. I mean, it is a long-term plan, so it’s not something that can be undone easily by somebody new that comes in or something like that. So, I mean, it’s a long-term plan.

Julia:  

And I would also say that it’s very ingrained in our company culture, that the company’s success is your success.

Leslie:

Yeah. So, it’s a long-term investment over time and it’s something that you can use to build your future with.

Julia:  

So, for anyone who’s interested in joining an employee-owned company, I think we have a handful of open positions. Right, Leslie?

Leslie:

We do, Julia. They could go to accesssciences.com, and click on that link that says, Join Our Team, and they can fill out a general application. Or if there’s something more specific that fits their skill track, we have positions open in Hillsboro, here in Houston, Rio Rancho, New Mexico, and in Baton Rouge. Some of the positions we have, we have an AutoCAD position in Hillsboro, Document Controller, Coordinator in Rio Rancho, Change Management Consultant in Houston. So yes, we have a lot of positions open right now and yes, somebody could just go to our website, at accesssciences.com, and click on Join Our Team.

Julia:

And I know all of us on this call are biased, but I highly recommend Access Sciences as a workplace.

Leslie:

Absolutely. Matter of fact, last year, we were selected as one of the Houston Chronicles’ Top 100 workplaces for 2020. So yeah, great people to work with, we’re great team and top it off, we’re employee-owned. So, we were making what we are of the company.

Angela:

Why did we win that award?

Leslie:

We were chosen by responses that our employees gave, and a couple of other things that really stood out was the opportunity to give back to the community. So, Access Sciences gives every employee 16 hours annually, and you can go out and give back to the community during the workday, so it’s a time where you can step away and they can go out and… Reading to children, and one of the things that we did, we were working with TutorMate, and several of us were reading with children online, which worked really well as we kind of went into the pandemic. Because we weren’t able to meet in person or that type of thing.

So, it was nice to kind of start going into the segue of preparing these kids for… The children for online learning and that type of thing. Something that I do with my 16 hours is, I’m involved in the Houston Livestock Show and Rodeo. And so, I’m on the school art auction committee, as well as the International Wine Competition. So, I’ll spend my time doing that as well. So that was one of the things that stood out and helped us to win that award. And so, to be able to go back and give to these organizations, these non-profit organizations, is really a great thing. And I appreciate the opportunity that Access Sciences gives to us to do this.

Angela:

I think we have several members involved with the rodeo committees and-

Leslie:

We do, we do. Sondra is also on… Sondra Ludwick is on the rodeo merchandising committee, she’s been on that one for several years. And another committee she’s on, is the International Wine Competition, so we are both on that committee together. Yvette Clark is involved in the international committee, so she has been part of the international committee for a few years. And I think everybody in Houston, partakes a little bit in the Houston Livestock Show and Rodeo is, they’re so… This is their 90th anniversary, 90 years. It’s kind of hard to believe that they’ve been around that long, but you’re giving back to the youth of Texas and the form of scholarships, and helping these kids to be able to go to college and build… Well for their college education and their future as well.

Angela:

Are employees able to choose, what organization they would like to give their time to?

Leslie:

They can, they can. They would just need to submit a request to the Go team, and then we look at that and see if it fits with the company objectives, which is access to information is something that the executive team has selected in the past. But, if there’s also something that is in your heart, that speaks to you, you can also submit that. And people can also volunteer for organizations of their choice as well. So, there’s so many out there that are in need.

Angela:

Nice.

Leslie:

Yeah.

Angela:

Well, no wonder we won the award then, if everyone’s able to give back and-

Leslie:

Mm-hmm, yes. And it’s nice when people can do that.

Angela:

I think we also applied for that this year. We might be in a running this year, we’ll see.

Leslie:

Yes, we did. And I think we’ll know something a little bit later in the fall. So probably around November, we should hear a little bit more of, the results of that.

Julia:

Oh, looks like we’re going to be pretty busy the next couple of months. We’re also participating in the Hess Run coming up. Right? I just signed up this morning.

Leslie:

You did sign up this morning, okay. So, I’ll get your sign up tomorrow, but we paid for 20 employees and we’re already close to 28. So again, so, yeah, I was excited to see that, we’re going to need to go ahead and pay for more people because more people are signing up. And this is something that everybody can sign up for, you don’t have to be just in Houston, it is a virtual run. So, you can do it from anywhere. And it’s not even necessarily a run, you can walk, you can jog, you can run, you can do whatever you want and do it from anywhere you want. Last year, I did it from California.

Angela:

Bet you got lots of steps in California.

Leslie:

Yes, we got lots of steps in California. It’s beautiful.

Angela:

Well, Leslie, you are just amazing, and you are such an awesome person for everything that you give back and everything that you do for Access Sciences and providing for our employees to make everyone happy and your contribution to the Employee Ownership Committee. So, thank you for your time, telling us all about what an ESOP means and how it works. And we look forward to the announcement about top workplaces coming in the fall and this Hess Houston 5K.

Leslie:

Awesome, thank you so much, Julia and Angela for having me on this afternoon, I really appreciate it. It was great to share employee ownership with everybody and talk to everybody about it.

Julia:

Yep. And for our listeners out there, make sure you follow us on social media for more fun Employee Ownership Month content. We’re rolling out with that.