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Excellent remarks from the Internet, thank you. Addressing your points in order: + So you're suggesting everyone gets an equal split regardless of salary? I g
by simonswords82 9y ago
Excellent remarks from the Internet, thank you.
Addressing your points in order:
+ So you're suggesting everyone gets an equal split regardless of salary? I get it, that's probably fairer.
+ Again, you're saying the same profit share regardless of role or salary, right?
+ Sales easy to manage but they "get" numbers more than most people. Pay them money when they earn it. Agreeing how they earn it is the trick. My plan is to compensate sales people in addition to profit sharing on an OTE basis.
+ The primary business purpose was originally for motivation but to be fair I think all my team are sufficiently motivated to do a good job. They're all diligent and thoughtful about their work, and passionate about getting shit done. Because of that, there's no need for the profit share to motivate them further.
Instead I suspect it's just a way of rewarding them for their work, and have them partake in our success meaningfully.
In other words, yes it's a good will program. On that basis if it's an equal split of profit at say 20% regardless of salary that's fair, and somewhat easy, to implement.
+ Equity is a nice idea, and something that comes next when we've solidified certain key people's roles.
+ Shadow equity eh? I had not heard of that. I'll give that some consideration.
+ Here's the profit sharing scheme I think I'm going to run with, it's as simple as you suggest: 20% of all profits for the financial year will be paid out to all staff, split equally across individuals regardless of their salary, seniority or, length of service. We all ultimately partake in our jobs equally, and should therefore reap equal benefits.