The Way I Heard It with Mike Rowe 408: Matt Malone—From the Ground Up
Oct 8, 2024
Matt Malone, CEO of Groundworks, discusses his innovative employee ownership model that recently transformed 5,500 workers into stakeholders. He emphasizes the dignity of blue-collar work and the emotional impact of granting ownership. Malone also highlights the financial opportunities in foundation repair, advocating for fair recognition of all workers. The conversation touches on the importance of vocational education amid labor shortages, urging an appreciation for skilled trades and ethical leadership in business.
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Data Prompted A Different Conclusion
- A Gallup survey claiming the American dream is dead prompted Matt to double down on creating paths to prosperity.
- He reports many field foremen already earn $85k–$110k, showing trades can offer strong incomes without college.
Competitor Tactics After Acquisitions
- Competitors tried to cripple Groundworks after acquisitions by hiring entire production staffs away overnight.
- Matt recounts one incident where a rival recruited every production worker from a branch, leaving him temporarily unable to serve customers.
Align Incentives With Investors
- Combine profit-sharing, bonuses, and equity to incentivize performance while sharing company growth with employees.
- Structure investor agreements to allocate returns for employee ownership as the business increases in value.