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I think profit sharing should be inherent to working.
Every pay cycle, everyone gets their base pay, and then additional compensation is awarded out of half of that cycle's profits, half of that is distributed based on time contributed that cycle and the other half is distributed based on seniority.
The craziest thing is even until the late 1990's even a company like Walmart had profit sharing for employees, and it was pretty nice even for part time workers!
We do this where I work. But when things go bad and the expected money goes away there's an adverse effect.
I mean there doesn't have to be, that's why I said a base level of pay, it's the minimum that has to be poneyed up for doing the work at all
Even with that base level the extra money becomes expected especially for the people working things like accounting that feel like they worked as hard as the year with extra pay.
Couldn't it just be itemized on the stub so they know what can be counted on and what's being tacked on?
Oh it is, and people understand what it is but it still feels like shit when that item is 0 and you worked your ass off.
Especially since in a lot of industries the profit isn't necessarily correlated to effort or performance.
Maybe keep a lean season fund out of the remaining half then? I was picturing that going more towards potential expansion or R&D but in an industry that's basically already hit peak performance with current tech and methodology that could also be used as a sort of "overtime" bonus for high work low reward sprints
People are really bad at knowing what is expected income and what is bonus income. I know multiple workplaces where they get PISSED if their bonus is delayed/lower than last year. It doesn't make sense to me, but it seems common.
Just itemize it on the pay stub?
A buddy of mine has a similar setup. He's one of the smart ones so he lives off of his base pay and the profit sharing goes into a brokerage account for retirement/emergencies. However, most of his coworkers live far beyond what the base pay provides and end up in a bad spot when there is a bad quarter.
This would be great if some/all of the profit sharing could go to a tax advantaged retirement account like a 401k, that would make it less likely people would count on it to live. The wealthy have ways to not count a lot of their compensation as taxable wages, the rest of us should have that too.
I mean skipping the tax man at that scale should be heavily discouraged, but putting that money into a retirement fund automatically seems like a smart way to keep people saving.