Adworkshop is located in Cold Brook Plaza in Lake Placid.
To learn more, visit their Web site at www.adworkshop.com.
LAKE PLACID — Adworkshop believes it is the first company headquartered in the Adirondack Park to establish an Employee Stock Ownership Plan.
Company Principals Adéle and Tom Connors sold 33 percent of the full-service marketing communications company to their employees earlier this year via shares of company stock as part of those employees' retirement benefits. The Connors retain 66 percent of the company stock.
Mrs. Connors said that, as the couple got older, they began looking at future options such as selling the company.
"We decided an Employee Stock Ownership Plan was our best choice," she said.
That doesn't mean they are leaving the business anytime soon, she said. It does provide a path for Adworkshop to continue when they do while also giving employees incentive to help it grow and improve.
Mr. Connors said other larger companies such as Stewarts and Kinney Drugs with locations in the park have ESOPs, but they aren't headquartered there.
The decision didn't take long, he said, but its implementation took about two years. Adworkshop Finance Director Sandy Gagnon, a trustee of the plan, said it is a complicated and heavily regulated process.
They were assisted by SES Advisors, a Philadelphia-based firm that specializes in establishing ESOPs. She said the company is an ESOP itself.
"They've been there, done that," Gagnon said.
As with any retirement plan, there are eligibility requirements, she said. Anyone who was hired before June 30, 2008, was automatically included in the plan, Gagnon said, while those hired after that date later earn eligibility.
Gagnon said that because employees have a direct stake in the company, they work harder and more efficiently. An ESOP generally performs better than a privately held company, she said.
General Manager Darcy Norfolk said employees also look for more ways to save money, such as reducing energy use.
In a news release, Adworkshop cited Employee Ownership Foundation figures that 66 percent of ESOP companies performed better in 2008 than 2007. Also, 71 percent indicated increased revenue in 2008 and 66 percent reported increased profitability.
Mrs. Connors said the change has led to implementation of open-book management. The company's financial information is now shared with employees on a monthly basis.
Norfolk said the highly motivated employees exceed clients' expectations, which also helps grow the business.
The Conners were the only employees when they formed Lake Placid's first advertising agency in 1977. The workforce has since grown to more than 30.
While some are locals, the majority have moved to the area by choice.
"One truism of everyone is a passion to live in the Adirondacks," Mrs. Connors said.
That has helped with employee retention. She said the company's first employee, Senior Designer and Traffic and Production Head Kathy Ford, is still with the company after 31 years.
Marketing Strategist and Media Director Jon Bouman, also an ESOP trustee, said most of the company's clients are in the tourism, hospitality, health care and financial sectors. Tourism accounts for more than 50 percent.
Mr. Connors said those clients come from across the Northeastern United States.
Norfolk said Adworkshop originally focused on design and print, but now is involved in all forms of media. Mr. Connors said the company focused early on the Internet, partly out of necessity because of its remote location.
"We call ourselves tradigital — a combination of traditional and digital," he said.
Mrs. Connors said their workforce stays on the cutting edge. Integrating video into clients' Web sites has increased dramatically.
Social media marketing and search-engine marketing have also been areas of growth, Bouman said.
Gagnon said Adworkshop, like many companies, saw a slight reduction in business last year due to the struggling economy. She said it was less than the industry standard.
Mrs. Connors said the upcoming year also appears challenging, as many of their tourism-based clients rely on government funding. Bouman said there are already indications state tourism funding is going to be cut.
The company has more than 30 clients, Mr. Connors said, none of which accounts for more than 10 percent of their business. That diversification will help Adworkshop remain strong, he said.
E-mail Dan Heath at: dheath@pressrepublican.com
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