Wednesday, December 22, 2010

Profit sharing

Why don't organizations do profit sharing with employees like they do with share holders in the form of dividends. Aren't employees share holders too of a different form?

May be organizations should take out some portion of profit to be doled out as dividend to employees. Each one would get in proportion of their salaries. Of course this would be apart from the Variable pays and bonus etc. Since that also depends on the roles of each person.

Quarterly, half yearly or yearly could be debated though. This could make people look at the organization as a whole and not just team, unit, function etc.

Yeah, top management could ask - when company makes losses? Well they do cut jobs and reduce salaries or don't give any hikes in such times. So why not, do it the same with profits too.

Imagine, 3% of profits of next quarter distributed among employees. May not be a big sum but still not bad.

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