Research shows again and again companies that share ownership broadly with their employees and get employees more involved in day-to-day work decisions outperform their peers in the marketplace, thanks to their engaged and motivated work-forces. Wouldn’t it be great if there were a way, even if you don’t work for an employee-owned company, that you could profit from this knowledge? Turns out, there is.
You can now invest in a mutual fund of sorts available at Motif, a web-based brokerage site that allows people to create their own investment portfolio. The fund, which is called the “Employee Ownership Index,” is made up of a basket of 27 company stocks that meet a set of criteria that includes:
1. Broad-based equity compensation programs, which are defined as ESOPs with an average account balance of $30,000 or more and/or stock option/restricted stock grants for a majority of full-time employees.
2. High engagement work practices as measured by their appearing on one of the Best Companies to Work for List created by the Great Place to Work Institute, the Gallup High Engagement Index, or the Engagement Alliance Index.
Prominent examples currently represented in the index include Southwest Airlines, Intuit, Alphabet, Goldman Sachs, and Whole Foods. It was Corey Rosen, the founder of the National Center for Employee Ownership, who dreamed up the idea for the index.