Employee Ownership Boosts Retention at Perham Construction Firm

Hammers Construction told community members on November 24, 2025 that its new Employee Stock Ownership Plan, combined with expanded staff focused programs and regular onsite culture building events, has led to measurable improvements in employee retention. The Perham based firm, founded in 1956 and now employing more than 60 people, said the ESOP gives long time employees company stock as part of retirement benefits, creating direct financial incentives tied to the company success.

Company leaders described a clearer path for succession and stronger incentives for crews to stay together, which they said improves quality and efficiency on both local and regional projects. Continuity among crews helps reduce time lost to training and re onboarding, preserves institutional knowledge about regional construction conditions, and supports consistent standards on jobs across Otter Tail County and neighboring areas.

For local residents the change carries several practical implications. Lower turnover tends to reduce the cost of recruiting and re training, which can make bids more competitive and help keep project timelines on track. A locally anchored, employee owned firm is also more likely to keep payroll and contracting dollars in the community, supporting other businesses and municipal tax bases. As a family owned business that has grown over decades, Hammers Construction represents a stable employer in Perham with experience on a range of community projects.

The adoption of an ESOP also reflects broader business strategy considerations for family owned firms considering ownership transitions. Making employees partial owners can provide retirement security to long serving staff while letting founders monetize equity without selling to outside buyers. For Otter Tail County policymakers and economic development officials, the case highlights a tool that preserves local control of firms and promotes workforce stability.

While the company did not release detailed turnover rates, the reported retention gains and continued investment in employee centered programs signal a potentially durable shift in how a long established Perham builder manages talent and anchors economic activity in the region.