Do any of your offer a profit-sharing model for your staff?

[Andy D]

This is an idea that I have had kicking around in my head for a while, not sure if it would be practical:
Set the employees down and tell them this:

"Materials, overhead, your pay, my pay (what I need to make from the company), etc. typically
run xxxx much a year, we typically gross xxxx a year, leaving xxx which would be split among you, the employees.
If we don't meet that goal, you don't lose money you just don't get a bonus and the negative amount is carried over to next year.
With this set-up, if someone is stealing money or materials, they are literally stealing from you, the other employees.
If someone is not doing their job, they are literally stealing from you, the other employees.
If someone is constantly messing up, they are literally costing money for you, the other employees.":

 

[Notarealsignguy]

This is an idea that I have had kicking around in my head for a while, not sure if it would be practical:
Set the employees down and tell them this:

"Materials, overhead, your pay, my pay (what I need to make from the company), etc. typically
run xxxx much a year, we typically gross xxxx a year, leaving xxx which would be split among you, the employees.
If we don't meet that goal, you don't lose money you just don't get a bonus and the negative amount is carried over to next year.
With this set-up, if someone is stealing money or materials, they are literally stealing from you, the other employees.
If someone is not doing their job, they are literally stealing from you, the other employees.
If someone is constantly messing up, they are literally costing money for you, the other employees.":

I wouldn't let employees know what the company was making. Most of them won't understand gross/net and when you tell them you billed out $1mil or whatever, it creates animosity. Bossman made $1mil, I do all of the work and only made $50k. Last year we had a customer who did similar to what you said. They had 17mil in sales and announced this as they were giving out bonuses at their Christmas party. I only know this because the disgruntled employees would come over here to pickup or drop stuff off and tell me ALL about it.

 

[Andy D]

I wouldn't let employees know what the company was making. Most of them won't understand gross/net and when you tell them you billed out $1mil or whatever, it creates animosity. Bossman made $1mil, I do all of the work and only made $50k. Last year we had a customer who did similar to what you said. They had 17mil in sales and announced this as they were giving out bonuses at their Christmas party. I only know this because the disgruntled employees would come over here to pickup or drop stuff off and tell me ALL about it.

The last place I worked was a large-ish electrical and graphic shop, and we all knew ballpark of what they grossed each year and I never noticed anyone becoming disgruntled. 4 years ago it was around 6 million and
in the city were it was, 50k a year is rare.
I wouldn't let them know what my part of the overhead was, but showing that the profits are not what they think they are might be helpful.

 

[Notarealsignguy]

The last place I worked was a large-ish electrical and graphic shop, and we all knew ballpark of what they grossed each year and I never noticed anyone becoming disgruntled. 4 years ago it was around 6 million and
in the city were it was, 50k a year is rare.
I wouldn't let them know what my part of the overhead was, but showing that the profits are not what they think they are might be helpful.

Maybe? I don't know how helpful it would be handing an employee $1k bonus check and telling them that you only made 30% profit.... on $6 million. I guess that I have never been real crazy about bonuses, there never seems to be a good way to incentivize with money and they just become another expected form of compensation.

 

[Texas_Signmaker]

I like to pop out a $100 bill when someone worked real hard or stuck around after hours to finish a job that ran long. No check, nothing written on the books, just a $100 bill in cash. I think that leaves more of an impression of an appreciation of their work than anything else.

 

[rossmosh]

Employees get bonuses. Owners get profit share. Investors get dividends.

You want a share in the profit? Okay, then put some money into the company and be willing to shoulder some of the losses.

 

[Jeremiah]

Employees get bonuses. Owners get profit share. Investors get dividends.

You want a share in the profit? Okay, then put some money into the company and be willing to shoulder some of the losses.

I agree .
. This is the easiest formula ! Anything else gets too complicated , creates hard feelings and manipulation by the employee. A once in a while earned bonus or Christmas bonus has always worked well and keeps a loyal and Happy Employee .

 

[Jeremiah]

How can any company that took a Corona Virus Bailout even consider talking about Profit Sharing ? That was only a few months ago. Isn't that like the Obama Bailout and then the Execs took Huge Bonus Checks ?

 

[ikarasu]

We do profit sharing. It's usually works out to 1-2 k per person at the end of the year (30ish employees)

Prof fit sharing doesn't have to mean 20% of your profits are going to your employees. You could decide 1-5% of yearly profits goto employees, then split that amount up based on seniority.

It has its ups and downs. The lazy employees get resented by the good employees, but it doesn't really change anyone's attitude. The good.enployees appreciate it, while.the lazy ones take.it for granted.

I'd much rather a system where the good employees get bonuses or pay raises... I'm sure that'd Piss off the lazy employees... But their work ethic is their choice.