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Apr 10, 2014

Profit Sharing as method of Motivation

Do you want to strengthen the motivation of your workers?  

There are big corporations that offer creative financial schemes for their employees to further motivate them. One of this method is called profit sharing, this is basically the allocation of a certain percentage of the organization’s earning to its workers.

This is a very viable means for motivation for the reason that workers are entitled to this attractive financial scheme.Who will not work hard if workers are offered shares of stocks by the company that they are working for?

 This kind of creative motivational technique made possible through profit sharing. This is actually being undertaken by big corporations worldwide. But on the other hand the globalized economy makes stock ownership through profit sharing quite risky. 

For example if an economic power such as the United States, China, Japan and other economically powerful nation has a problem with their economy. There is always that risk that your own local stock market would also be affected. And it might result to the devaluation of the value of your local stocks. Nevertheless this is still a good scheme to impress upon the minds of workers that they are valued by their organization.

How about for small scale businesses can they also offer profit sharing to their workers? Of course they can! This can be done by forging an agreement with your workers that they shall be entitled to a certain percentage of your organization’s yearly net income.

Profit sharing is a very effective motivational tool that is seldom used by organization. Why? For the simple reason that there are greedy organizations/business owners. They only want for themselves the fruits of their organization; they don’t want to share it with their workforce who plays a big part in the realization of the organizational goals.

Why not try sharing a percentage of your profit with your workers? And see how they will plough back this goodwill in terms of their motivation and concern for the well being of the organization.  - Marino J. Dasmarinas

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