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Does anyone know where something like profit sharing falls on the reward continuum? It's still a "bonus" in effect, but it's a shared bonus if done right with
by akeefer 17y ago
Does anyone know where something like profit sharing falls on the reward continuum? It's still a "bonus" in effect, but it's a shared bonus if done right with no per-person computation and thus no individual component to cause people to distort their behavior or worry about unfairness. On the other hand, it can still easily become an expected thing. On the other other hand, it seems like a reasonable way to reward people for helping create a successful company. I've read writeups of studies around bonuses, but they're always around much more targeted per-individual bonuses instead of something approximating a profit share approach.
- moe 17y agoYou don't read about it much because profit share is the devil! Communism! Unthinkable. Profit share is reserved to the better people, investors, execs. You don't exist to share profit, you exist to create the damn profit. Yes, I'm exaggerating a little. But in essence that mindset is pretty much the norm in "old economy".