Martinson understands that the reasoning behind the owners’ decision focuses on the employees.

“I think, first of all, wanting to take care of our employees,” he said.

He said it is a way for the owners to give back to the employees, build a stronger employee team and workplace and help supplement longtime employees’ retirement funds.

Before, qualifying Broulim’s employees benefitted from a 401(k) plan; if they contributed 5 percent of their earnings toward 401(k), Broulim’s matched 4 percent.

The matching will continue, but now if employees want a match in 401(k), they still have to contribute, but if they contribute 5 percent, the additional 4 percent that would have been matched will be matched into ESOP.

ESOP (employee stock ownership plan) is an employee-owner program that provides employees with an ownership interest in the company.

According to Martinson, once a year based on profits and growth in the company, stocks will be allocated to the employees and go back to them for deposit. A third party evaluator goes in periodically to evaluate the value of the stock, meaning it can increase in value over time. An increased value means larger ESOP accounts for the employees.

“It’s a good retirement plan for the employees,” Martinson said.

He said government officials encourage ESOP programs because they are made to supplement 401(k) and Social Security funds.

“The ESOP program is proven to be a lot more beneficial than 401(k) and definitely social security,” he said.

Martinson said a program like this helps the employees in various ways, including by motivating employees to stay longer and giving them a greater sense of pride and ownership in their job.

Employees have to be full-time employees at least 21 years of age and have to have worked at Broulim’s for at least a year to qualify for the ESOP program. ESOP does not cost the employee anything as long as they meet these criteria.

“There’s a reason to stay here and make a career out of Broulim’s,” Martinson said.

Martinson also said this program benefits the company and makes it more unique. He said there are a handful of companies throughout the country that are employee-owned companies, like Winco Foods.

“I think it makes us very competitive with larger companies and really paints a picture for a career in the grocery business,” he said.

Martinson feels that the ESOP program at Broulim’s will encourage people to shop local first.

“It’s keeping dollars spent in the local community here,” he said.

The employees learned the news during a meeting on Wednesday.

“I think there was an element of surprise because they didn’t know this was coming,” Martinson said.

He believes the employee ownership of shares will bring on a new culture within the store. He thinks it will give employees a new perspective and encourage them to go the extra mile to give a good experience to customers.