A recent article in the Indianapolis Star titled Sharing the Wealth highlights something that we’ve always believed – that companies gain loyal employees through respectful practices, enriching job roles and, when possible, sharing the fruits of their labors with those who are responsible for producing them.
AIT, which was featured in the article, is poised to share $2 million in bonuses with its 300 workers. As President and CEO, Michael A. Evans, puts it, “They have earned this.”
What have we at Humanergy experienced when it comes to profit sharing and employee loyalty?
- Profit sharing helps create employee loyalty, but it’s not a panacea. Research indicates that sharing profits can positively impact turnover, but other factors can outweigh its effects. Profit sharing won’t trump a toxic work environment or other negative working conditions.
- Profit sharing is one good way to show people their efforts are appreciated, but it is not the only way. Employee appreciation can take many forms, including verbal praise, public recognition, employee incentives, etc.
- Profit sharing can boost productivity, but watch for shortcuts and quick fixes. In the best of all worlds, employees will take actions that boost productivity, increase revenues and lower costs. In the worst case scenario, employees cut corners on quality – something that can have a profoundly destructive effect in the short and long term.
Because we understand that our people own our success, Humanergy shares profits with its employees. Giving employees a stake in the company’s financial future sends a powerful message about how much we value those who make it possible.
Because we also know that profit sharing isn’t the universal remedy, we also make sure share the wealth in other ways – by keeping communication open, valuing everyone’s diverse contributions and helping our people realize their dreams.
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