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Discussion Starter #1
Employers, do you or your company participate in Cash Profit Sharing or Gain Sharing?
I'm going to exclude deferred profit sharing to 401k or retirement plans.

I'm interested in knowing how you have it set up and if you have noticed higher employee productivity?

Or if you're an employee of a company that gives cash profits sharing/gain sharing, how do you feel it affects your morale or the morale of the company?

I'm considering something like this for my employees and wanted to hear what other employers & employees think about profit sharing.
 

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Discussion Starter #4
My employees are all paid hourly, however I want to give them a little "extra" but not per hour, which will be a recurring cost for me.. but when sales are up, i wouldnt mind giving them a % of profit.. of course, over a certain limit and upto a certain limit...
I already give them end of the year cash bonuses... and birthday bonuses... so i'll have to do some serious # crunching...
 

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Employers, do you or your company participate in Cash Profit Sharing or Gain Sharing?
I'm going to exclude deferred profit sharing to 401k or retirement plans.

I'm interested in knowing how you have it set up and if you have noticed higher employee productivity?

Or if you're an employee of a company that gives cash profits sharing/gain sharing, how do you feel it affects your morale or the morale of the company?

I'm considering something like this for my employees and wanted to hear what other employers & employees think about profit sharing.
As an employee, I wasn't too happy on my first professional job 17+ years ago that I was told I'd receive a profit sharing check only to find out one half went to cash and the other into a mandated 401K with company stock which on average has been lower than the buying price for 80% of the time over the last 16+ years.
 

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My employees are all paid hourly, however I want to give them a little "extra" but not per hour, which will be a recurring cost for me.. but when sales are up, i wouldnt mind giving them a % of profit.. of course, over a certain limit and upto a certain limit...
I already give them end of the year cash bonuses... and birthday bonuses... so i'll have to do some serious # crunching...
That's kinda what i dont want to do.. Sure $ towards retirement is nice, but it's not that instantaneously rewarding, not like getting extra $
just want give a cash bonus when sales are over a certain limit...
Personally, the more an employee can control in assisting to get your profit numbers up, the better the morale in my opinion since it's more money for them. I can understand having a minimum as an incentive, but why the cap?

Larger companies like mine, are doing the opposite, it's a combination of division, company and stock market performance with the numbers leaning more toward the stock market every year which is beyond our control and also brings down morale.
 

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Work is called 'work' for a reason, as opposed to 'super happy fun time', and people who make a virtue of this are mindless drones. While some work is less unpleasant than others, if I am going to be making the same amount of money anyway, better to work as little as possible. Why would I bust my ass if the outcome is the same as if I took my time and cut corners?

Therefore, if I were an employee, anything beyond the bare minimum not to get fired would be diminishing returns.

So far as I have been able to ascertain, one advances in a company through connections and office politics, while one avoids being fired by simply being less incompetent than the next guy.

As for attempts to "improve morale", it seems to be bullshit artistry and psycho babble in order to make the damn henhouses called "human resources" appear necessary.
 

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Discussion Starter #9
I'm still trying to develop a system that would incorporate what you said BDT
Maybe some sort of monthly employee peer evaluation... where they would evaluate each other based on how much each other believes the other contributed.
For my longest time employees who basically are the backbone to my company, i'd obviously offer a higher percentage.
the new comers who are "bodies" i'd probably offer a substantially less bonus... since they are (excuse the rudeness but its true) replaceable.
I'd like to offer my top employees more $ but not hourly.. because when it is slow, thats more of a burden on the company.. and they all understand... and of course when its booming, and they are running around all day busting their ass, i'm sure it would be golden for them to receive a nice bonus for their efforts...
 

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Discussion Starter #10
I;ve had quite a few of you... guess what, i dont need you full time anymore.. 3 days a week.. 4 hours a day..
eeeh.. we are slow, 1 day a week 3 hours a day..
BYE BITCH.. no one is going to stick around, problem solved..
go become someone else's problem....

Work is called 'work' for a reason, as opposed to 'super happy fun time', and people who make a virtue of this are mindless drones. While some work is less unpleasant than others, if I am going to be making the same amount of money anyway, better to work as little as possible. Why would I bust my ass if the outcome is the same as if I took my time and cut corners?

Therefore, if I were an employee, anything beyond the bare minimum not to get fired would be diminishing returns.

So far as I have been able to ascertain, one advances in a company through connections and office politics, while one avoids being fired by simply being less incompetent than the next guy.

As for attempts to "improve morale", it seems to be bullshit artistry and psycho babble in order to make the damn henhouses called "human resources" appear necessary.
 

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Back in Africa....
When my father became the first Safari Outfitter in Ethiopia he did some things that I later discovered were revolutionary.

Fly-In safaris where the client flew from a hunting camp to another.

And, a client who hunted with us multiple times told us he was amazed to find the same crew each time he came. He said that the outfitters everywhere else he had hunted, all over the world, had the problems of unions which caused drivers to only drive, waiters to only serve, trackers only tracked and so there were huge staffs of people doing what we did with six to eight people, then on payday everybody disappeared until the money was gone so there was constant turnover and nothing resembling teamwork.

What my father did was to pay extremely well, show respect for their abilities and competence and treat them like family, in other words, far better than the competition in other countries.
Expanding on that, he let them know what the safari was costing the client and what each position on the crew was worth to him so, although everybody made different amounts of money they also knew the reason why and where they were in the organization.

I learned to appreciate commission sales in the Real Estate business and believe being rewarded for accomplishment is the best way to earn a living.
After a long time in the Amway business I know the results of their business model, which is essentially to keep 35% and figure ways for the distributors (now known as Independent Business Operators to keep the IRS happy) to earn the rest of the dollar spent by the consumer.
My point is that, the boss of any business is using employees to diversify himself so more work and output is accomplished so the trick is paying them fairly while still retaining what is necessary to run and grow the business and provide the fair profit for the payer of the bills.
 

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I bust my butt where I work. I do more than the other employees. If they call me and ask to go do something extra I just go do it, complaining about it would not make a difference so I just go do it. They call me if they need some one to run to Louisiana on a call in and get there as early as possible. I got up at midnight one night because I had to be In Louisiana before 7 a.m. I guess that is why they throw the call ins and extra stuff my way the majority of the time.
I dont get paid more than anybody else and none of the employees get bonuses.
I get a little pat on the back, I guess that is better than a poke in the eye.
I do think that if I was in charge I would be like BDT, there is one guy I would get rid of asap if I had that authority.
I will just keep doing what I do for now until some thing better comes along or maybe I will get to move into a higher paying position.
 

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Forgive me if I'm out of line, but I thought we were talking about profit sharing, which is not based on the performance of the individual employee, but how they work together to bring up the profits of the company and are rewarded by sharing in its prosperity?

Individual performance or merit based incentives are something else. We have performance based awards, unfortunately it's too political here and depends upon the generosity of the manager your working for in recommending you for one. In a smaller company where the owner sees the performance of each individual, that might be more equitable.
 
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