TYSONS, VA–Jim Bognet co-founded Bognet Construction twenty years ago in a basement office with used old boxes for a desk. Today the general contracting company has more than $100 million in revenues, a staff of 70 and its own headquarters building, but Bognet has not forgotten his early days of working for other firms. He tells of the time he asked an employer if he could have some equity in the new offices the firm was opening in other cities. The answer was no. “I promised myself if I ever had an opportunity to start my own company I would make sure I wouldn't give the same response to my key employees,” he told GlobeSt.com.
Bognet kept that promise four years ago when he brought on a partner and gave him some equity. That worked out well, and last month the company did it again, giving equity to three long-time staffers.
It is an unusual move in an industry in which many firms keep ownership among the founders. But as the employment market tightens and construction talent becomes more competitive Bognet expects he will make more employees equity partners. After announcing the three new equity partners — Tracey Gardiner, Trevor Hirst and Carlo Stalteri — Bognet had other employees come to him to ask what they can do to earn a stake in the company as well.
Longevity and loyalty are a prerequisite, for starters. Gardiner joined the firm in 2008, rising from marketing coordinator to the director of Preconstruction Operations. Hirst joined Bognet in 2011 and became Vice President of Construction. Stalteri started as an intern in 2006 and is now Senior Project Manager.
An Entrepreneurial Culture
But clearly not all of Bognet Construction's employees can achieve the ultimate perk of equity partner and the firm is keenly aware that it has to be competitive in other ways in this tight market. “We are finding we need to provide larger incentives, or bonus plans and the best insurance policies,” co-owner Jennifer Bognet tells GlobeSt.com. “It's basically an employees' market right now and potential employees are not bashful about telling you what other companies are offering.”
One advantage that Bognet Construction has is its entrepreneurial culture, Jennifer Bognet added. “Especially if they are just coming out of college, what seems to really appeal to them is they have full control over the course and pace of their career with us.”
The company is also strong on maintaining engagement with its workforce after they come on board. “We really take the time to celebrate and recognize people in both big ways and little.” An example of the latter is the big brass bell the company installed and will ring whenever someone wins a project.
Or this: when an employee meets a certain goal the company will take the employee and his or her guest — a spouse or a friend — on an all-expense paid trip for a long weekend. Indeed, at the end of this month the company is headed to Turks and Caicos with its 2017 top performers.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
