Our profit sharing plan pretty much followed the two pool approach. Here's a decent resource covering it: http://www.pearlmeyer.com/Pearl/media/PearlMeyer/PDF/

Our profit sharing plan pretty much followed the two pool approach. Here's a decent resource covering it: http://www.pearlmeyer.com/Pearl/media/PearlMeyer/PDF/PMP-WAWART-Twopoolapproach-JHeim-11-10.pdf http://www.pearlmeyer.com/Pearl/media/PearlMeyer/PDF/PMP-WAW... That is, of course, if you have profits. Also, be careful. Extrinsic motivations like profit sharing doesn't correlate perfectly with productivity and performance. At some point, you're just throwing money away if you're just giving it all directly to employees. You'll get more bang for your buck if you spend first on things that create intrinsic motivations in your employees like a mission driven culture.