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240 PART 3 • STRATEGY IMPLEMENTATION

If an ESOP owns more than 50 percent of the firm, those who lend money to the ESOP
are taxed on only 50 percent of the income received on the loans. ESOPs are not for every
firm, however, because the initial legal, accounting, actuarial, and appraisal fees to set up
an ESOP are about $50,000 for a small or midsized firm, with annual administration
expenses of about $15,000. Analysts say ESOPs also do not work well in firms that have
fluctuating payrolls and profits. Human resource managers in many firms conduct prelim-
inary research to determine the desirability of an ESOP, and then they facilitate its estab-
lishment and administration if benefits outweigh the costs.
Wyatt Cafeterias, a southwestern United States operator of 120 cafeterias, also
adopted the ESOP concept to prevent a hostile takeover. Employee productivity at Wyatt
greatly increased since the ESOP began, as illustrated in the following quote:

The key employee in our entire organization is the person serving the customer on
the cafeteria line. In the past, because of high employee turnover and entry-level
wages for many line jobs, these employees received far less attention and
recognition than managers. We now tell the tea cart server, “You own the
place. Don’t wait for the manager to tell you how to do your job better or how to
provide better service. You take care of it.” Sure, we’re looking for productivity
increases, but since we began pushing decisions down to the level of people who
deal directly with customers, we’ve discovered an awesome side effect—
suddenly the work crews have this “happy to be here” attitude that the customers
really love. 23

Balancing Work Life and Home Life
Work/family strategies have become so popular among companies today that the strate-
gies now represent a competitive advantage for those firms that offer such benefits as
elder care assistance, flexible scheduling, job sharing, adoption benefits, an on-site
summer camp, employee help lines, pet care, and even lawn service referrals. New
corporate titles such as work/life coordinator and director of diversity are becoming
common.
Working Mother magazine annually published its listing of “The 100 Best
Companies for Working Mothers” (www.workingmother.com). Three especially impor-
tant variables used in the ranking were availability of flextime, advancement opportuni-
ties, and equitable distribution of benefits among companies. Other important criteria
are compressed weeks, telecommuting, job sharing, childcare facilities, maternity
leave for both parents, mentoring, career development, and promotion for women.
Working Mother’s top eight best companies for working women in 2009 are provided in
Table 7-14. Working Mother also conducts extensive research to determine the best U.S.
firms for women of color.
Human resource managers need to foster a more effective balancing of professional
and private lives because nearly 60 million people in the United States are now part of
two-career families. A corporate objective to become more lean and mean must today

TABLE 7-14 A Few Excellent Workplaces for Women
1. Abbott—An elaborate child care center at headquarters serves 670 infants, toddlers, and pre-schoolers; employees can visit their
children during the day.
2. Allstate Insurance—Child care centers are abundant: all employees have access to discounted child care.
3. American Express—Flex scheduling and tuition reimbursement enable most employees to continue their education.
4. Citi—Telecommuting for employees makes caring for family a priority.
5. Fannie Mae—Reimburses tuition-related expenses up to $10,000 per child; provides four weeks of paid maternity leave.
6. IBM—Work/life balance is an integral part of the IBM culture.
7. Johnson & Johnson—Nearly all employees say you never have to choose between family and work at J&J.
8. Merck & Company—Flextime and tuition reimbursement are available to nearly all Merck employees.
Source: Based on 2009 Web site, http://www.workingmother.com/web?service=direct/1/ViewArticlePage/dlinkFullArticle&sp=1780&sp=94.