Why Tenure-Based Profit-Sharing?
Why Profit-Sharing?
Why Profit-Sharing?
Why Profit-Sharing?
Profit-sharing unites the entire organization around its common goals, which include creating Value and generating Profit.
Profit-sharing sends the right message and builds a strong foundation ownership mentality without the complexities and downsides of employee ownership.
Profit-sharing attracts, retains, and engages the best talent, maximizing performance, competitiveness, and profitability.
Why Tenure-based?
Why Profit-Sharing?
Why Profit-Sharing?
Tenure (length of employment with the company) represents arguably the most overlooked and yet critical elements of employee value, not found on a CV/Resume:
(1) Proven work ethic, reliability, loyalty, dedication, good character, values, and cultural fit
and
(2) Accumulated company-specific knowledge and experience
Tenure is an objective, transparent, consistent, and equitable basis for rewards.
Why 25%?
Why Profit-Sharing?
Why 25%?
We arrived at the suggested 25% profit-share based on 3 observations from our research:
1. Human Psychology: Similar to how we react to store discounts, we tend to ignore those under 10%, but tend to act on (change behavior) at 25%. In the context of profit-sharing, 25% also tends to be perceived as fair, which is important.
2. Today compan
We arrived at the suggested 25% profit-share based on 3 observations from our research:
1. Human Psychology: Similar to how we react to store discounts, we tend to ignore those under 10%, but tend to act on (change behavior) at 25%. In the context of profit-sharing, 25% also tends to be perceived as fair, which is important.
2. Today companies spend over 60% of their profits on shareholder distributions (dividends and stock buybacks) compared to 30-40% historically - that's an extra 25%.
3. Sharing 25% of the corporate profits with employees will solve the Income Inequality crisis in years, not even decades.
Donate!
Share25.org is a New York (USA)-based 501(c)3 Non-Profit. Support our mission to make tenure-based employee profit-sharing a standard part of every company's compensation philosophy or country- or state-level policy.
