Built with Purpose

Why can’t every employee own a piece of the business they work for and benefit directly from its success?

1. Shared Ownership Transforms Companies

Torch Technologies’ foundation lies in the idea of employee ownership inspiring innovation and growth. Bill Roark and Don Holder created Torch in 2002 after losing their corporate jobs, aiming to flip traditional corporate schemes. Their goal was to give employees real control over their work lives.

This model led to phenomenal results. Within its first year, Torch surpassed its $1 million revenue goal, earning nearly $3 million instead. The concept of shared ownership involved employees in decision-making and growth strategies, aligning personal goals with organizational success. This form of mutual investment and trust paved the way for unparalleled financial accomplishments over the years.

In 2004, the introduction of an employee stock ownership plan (ESOP) elevated the company’s culture and employees’ wealth. Stock values skyrocketed, reaching gains of over 32,000 percent. This meant that an investment of $1,000 in early ESOP shares ballooned to over $325,000, demonstrating the incredible potential of employee-first thinking.

Examples

• Surpassed its revenue goal, generating $3 million versus the projected $1 million.
• Achieved a 32,000% increase in stock value under the ESOP.
• Made Inc. 5000 for 15 consecutive years as evidence of sustained growth.

2. Employee Investment Drives Commitment

Ownership motivates employees to care deeply about their jobs because their financial and emotional investments are tied to the company's success. Torch’s approach ensured every worker benefited from growth, encouraging loyalty and higher performance.

During Torch’s early days, the company lacked funding to compete with larger firms in offering high salaries. Instead, Torch offered equity, creating a shared sense of purpose. This approach attracted top talent, including engineers like Brady Porter, who were willing to take pay cuts because they understood the bigger picture – ownership could lead to substantial long-term rewards.

The results were clear: employees committed more effort to their jobs because each contribution directly increased the company's value and, subsequently, their wealth. Collaboration thrived, eliminating the unhealthy competition that hinders progress in traditional firms that prioritize individual goals over company-wide success.

Examples

• Engineers like Brady Porter accepted a 20-30% pay cut to join as co-owners, trusting in Torch’s growth vision.
• Ownership culture fostered collaboration and reduced workplace conflicts prevalent in big corporations.
• Employees amassed wealth through stock plans, generating both income and a sense of belonging.

3. Stock Appreciation Rights Build Long-Term Loyalty

Torch introduced Stock Appreciation Rights (SARs) in 2011 as a unique way to incentivize and retain talent. SARs act like bonuses tied to stock price increases, offering employees financial rewards connected directly to company performance – even if they don’t outright own shares.

SARs were structured so employees received payouts incrementally over three to five years. These rights encouraged employees to stay and contribute since payout forfeiture occurred if someone left before their rights matured. SARs rewarded loyalty while providing a tangible link between individual contributions and monetary benefits, fostering commitment and drive across the workforce.

By applying this reward system to all employees rather than just leadership, Torch built a workplace environment where everyone worked toward shared success, knowing their efforts could yield substantial financial rewards.

Examples

• SAR bonuses were distributed based on stock value growth, directly benefiting employees.
• The system encouraged employees to remain invested in company goals for at least 3-5 years.
• Torch retained talent while linking financial rewards to the company’s long-term success.

4. Ownership Changes Work Culture

Employees at Torch don’t just complete tasks – they take full ownership of outcomes. Bill Roark’s experience with Carlos, the hospital cleaner who took exceptional care to prevent accidents during recovery walks, solidified this philosophy. Every role contributes to a bigger picture.

Employees at Torch apply this mindset to their labors. They’re empowered to not just meet client expectations but to focus on superior results, understanding that their work impacts both customers and their futures. This ownership enhances quality standards and trust in customer relationships.

This principle transformed Torch into more than just a business; it became a culture centered on responsibility and pride in ownership. It helped every worker see how their daily contributions align with larger goals.

Examples

• Carlos demonstrated how an everyday task – floor cleaning – could promote broader outcomes like hospital safety.
• Torch staff aims to always exceed client deliverables, feeling ownership over project results.
• Employees creatively solve problems knowing they benefit from long-term success.

5. Doing What’s Right Strengthens Communities

Torch Technologies embodies the principle “the time is always right to do what’s right,” inspired by Martin Luther King, Jr. This mindset shapes the company’s treatment of employees and its responsibility to its local community.

Through Torch Helps, a nonprofit created by employees, the company fosters significant change. Employees collectively decide where charitable funds should go, amplifying both engagement and impact. Torch initially footed the bill to establish the nonprofit to promote employee-led giving.

Torch Helps prioritizes diversity in donations, focusing on everything from public libraries to health clinics. This democratic philanthropy enhances morale among workers while creating deeper ties with the community Torch serves.

Examples

• Torch Helps supports wide-ranging causes like therapy dogs and hospital funding.
• By empowering employees to decide where resources go, the company increases trust and ownership.
• Torch earned recognition for its innovative community-centric business approach.

6. Collaboration Surpasses Competition

Torch’s employee ownership nixes the traditional head-to-head competition seen in many workplaces. Instead, employees understand that working together increases the value of the entire enterprise.

This collaborative culture fosters mentorship and teamwork, supporting mutual career and organizational development. Employees like Brady Porter become advocates for recruiting new, motivated staff, ensuring the company maintains momentum.

Torch shows how focusing on unity rather than rivalry can foster harmony, drive business growth, and offer fulfilling employee experiences.

Examples

• Recruitment efforts rely on current employees sharing powerful success stories.
• Managers prioritize building relationships, not silos, among teams.
• Mentorship programs encourage mutual learning, increasing talent retention.

7. A Transparent Business Model Wins Trust

Torch’s success depends on honesty, transparency, and employee involvement in decision-making. When employees know company strategies and challenges, they feel trusted and included.

This transparency creates deeper bonds between leadership and employees, enhances shared responsibility, and avoids negative speculation. Workers gain insight into how their contributions fit within larger business goals.

Being open about finances, decision-making, and risks strengthens loyalty and personal investment in shared success stories.

Examples

• Stock plan valuations are shared openly to showcase employees' wealth growth.
• Leadership meetings include updates on challenges and strategies.
• Employees can voice their ideas, creating an inclusive decision-making environment.

8. Employee Ownership Attracts Talent

Torch’s employee-first focus makes it a sought-after workplace. Offering ownership instead of using traditional salary structures allowed Torch to onboard enthusiastic staff during its early, cash-strapped years.

The willingness of talent to join despite lower initial pay reflects the attractiveness of working for a company that genuinely values each team member. Ownership gives individuals a reason to go above and beyond.

This dynamic creates a supportive community where retention rates rise, trust deepens, and performance exceeds expectations.

Examples

• Engineers joined willingly despite 20-30% salary cuts, trusting in Torch’s vision.
• Continued recruitment shines thanks to employees advocating Torch’s growth story.
• Ownership-based hiring built an enduring workforce aligned with long-term goals.

9. Business Can Balance People and Profits

Torch proves that companies don’t have to choose between treating employees well and being financially successful. Aligning these priorities results in shared prosperity for businesses and employees alike.

Torch’s ESOP and SAR programs distribute wealth among workers while achieving extraordinary growth rates. Simultaneously, the company makes substantial positive community contributions through efforts like Torch Helps, reflecting its commitment to fairness and global impact.

This combination of employee-first culture and stellar profits defies corporate norms, presenting an appealing alternative where ethics lead to both happier staff and bigger gains.

Examples

• Torch achieved 32,000% stock appreciation alongside community-driven philanthropy.
• Growth outpaced traditional market leaders like Amazon and Nike.
• Employees actively maximize company success knowing they share the profits.

Takeaways

1. Implement shared ownership plans to align employee motivation with company growth for sustained success.
2. Foster a culture of transparency and trust to boost loyalty, engagement, and idea-sharing across teams.
3. Balance ethical business practices with financial goals to create organizations that perform well while giving back.