Very interesting idea, probably will work for a number of employees but how do you keep it fair for the genuine hard workers in the business versus the turn-up-and-do-the- minimum workers. This is especially hard in a small business where you don't have management teams or leaders as such. Would assume it could go sour when employees think it's been a good year, worked hard and find out it wasn't and then receive little to nothing extra.
Thoughts?
- Ben L
For a small business, not for me.
I've tried it. You need to define business owners who have invested in their business money and time to build it up.
Employees are just that, if we do well and the staff perform, they're given salary increases. I have never worked for a company that gave vehicle use to employees, provided lunch each day and snacks, bonuses at Christmas, and when we do a "Christmas Do" we (pre-pandemic) all staff were taken for a weekend away. All these "extras" come out of owners' drawings and extra taxes are paid by the owners.
We continue to do this and grow the business, whilst looking after the staff as best we can, but no, we won't profit share again or give shares away. If we make a loss will staff prop us up?
- Steven D
This is a great idea and as they say, what is old is new again. I always thought a pool of shares 50 per cent for the employees was good then every three or six months declare a dividend. But you can't give out pay rises like lollipops. Also, as a friend of mine found out, trying this using a target when his worker didn't get the bonus complained it wasn't his fault, it can turn into a negative.
- Nick B
By far the best way to give employees an active interest in a business is to do what has been done in Germany, and other European nations, and that is to appoint employee reps to the board of directors.
These may be union-appointed directors , or otherwise appointed reps.
Then employees have an entree to the inner thinking, causes etc of company decisions and actual financial position. And a legal obligation not to work for the detriment of that company.
It would be extremely difficult for management to keep financial handouts to employees on an equitable level.
- Alexander M
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