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When my company makes 10% more profit from my work, my pay should increase 10% for it to be fair. This does of course not happen, which is my point. When the co

• _heimdall 2y ago
  Why should it work that way though? Initial hiring salaries are generally based largely on the market rate for talent, not the expected profit creates by the employee. If they are expected to share 10% of all profits with existing employees wouldn't that create incentives for them to fire existing employees and rehire at market rates, effectively avoiding the profit sharing scheme? In theory it does sound great for the employee, I wouldn't argue with that at all. But unless profit sharing is part of the compensation agreement up front it seems unreasonable to expect. That said, some companies absolutely do offer bonuses tied to profit targets. They're one-time bonuses so employee pay isn't adjusted up or down every single year to follow profits, they just get some cash incentive to share some of the profits with employees.