Read on Twitter
PROFIT SHARING
How to Get Your Employees to
>> Stay for Years
>> Be Loyal
>> Work Hard for You
Read on, Playa
// THREAD //
How to Get Your Employees to
>> Stay for Years
>> Be Loyal
>> Work Hard for You
Read on, Playa
// THREAD //
OK, SO WHAT IS PROFIT SHARING?
Taking 5-10% of your company's profits
And distributing it to your employees
Every quarter or once a year
You do this to incentivize employees to work harder & stay longer
Sinple enough, right?
Let's get into it
Taking 5-10% of your company's profits
And distributing it to your employees
Every quarter or once a year
You do this to incentivize employees to work harder & stay longer
Sinple enough, right?
Let's get into it
THE PROS
- give team skin in the game
- instills ownership mentality
- motivates team to work hard
- builds loyalty & trust
- incentivizes team to stay at company longer
- give team skin in the game
- instills ownership mentality
- motivates team to work hard
- builds loyalty & trust
- incentivizes team to stay at company longer
THE CONS
- costs $
- cuts profit margin short-term
- you spend time thinking & figuring plan out
- potential to cause drama within the workplace
- costs $
- cuts profit margin short-term
- you spend time thinking & figuring plan out
- potential to cause drama within the workplace
Pros heavily outweigh cons
Think long-term
You sacrifice a slice of profit on the front-end
Get back loyalty, ownership mentality, & long employee tenures in the long-term
Easy decision
Think long-term
You sacrifice a slice of profit on the front-end
Get back loyalty, ownership mentality, & long employee tenures in the long-term
Easy decision
BEFORE YOU START
Have a GREAT, TRUSTED, HARDWORKING team in-place
Be profitable (duh)
Set quarterly/yearly goals for your company & each employee
Teach your team
- basic finance/biz principles
- how your company runs financially: Revenue, Expenses, Debt, Profit Margin
Have a GREAT, TRUSTED, HARDWORKING team in-place
Be profitable (duh)
Set quarterly/yearly goals for your company & each employee
Teach your team
- basic finance/biz principles
- how your company runs financially: Revenue, Expenses, Debt, Profit Margin
WHO QUALIFIES
Employees who stay 1+ year
Non-commission & full-time employees
NO part-time or commission-based employees
Valuable money-makers... don't add lazy or unimportant employees (while we're at it, you should fire them)
Employees who stay 1+ year
Non-commission & full-time employees
NO part-time or commission-based employees
Valuable money-makers... don't add lazy or unimportant employees (while we're at it, you should fire them)
HOW TO DISTRIBUTE
Divide overall profit share pot by employee salary
Let's say your profit share pot is $1M & overall employee salary on profit share is $5M
- Employee making $100K gets $20k
- Employee making $350K gets $70K
Pay out quarterly or yearly as a bonus
Divide overall profit share pot by employee salary
Let's say your profit share pot is $1M & overall employee salary on profit share is $5M
- Employee making $100K gets $20k
- Employee making $350K gets $70K
Pay out quarterly or yearly as a bonus
CONCLUSION
To build an empire you need a long-term minded, skin-in-the-game team
Profit Sharing is the way to go
It'll change you & your employees' lives
Like & RT the first tweet if you got any value out of this
// END THREAD //
To build an empire you need a long-term minded, skin-in-the-game team
Profit Sharing is the way to go
It'll change you & your employees' lives
Like & RT the first tweet if you got any value out of this
// END THREAD //
Sign up to my email list if
You want content I keep secret because it's TOO GOOD for Twitter http://tyfrankel.com
You want content I keep secret because it's TOO GOOD for Twitter http://tyfrankel.com
