Profit-Sharing Companies Succeed With Generosity

By Stefan Lopez | Mar 15, 2013 05:43 PM EDT

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Those who are entering the workforce would do well to look towards companies that employ profit-sharing mechanisms in their payment plans. Companies both large and small have found success in giving their employees the opportunity to get a piece of the profits, and the employees certainly aren't complaining.

Most notable among companies with this philosophy has been the German car manufacturer Volkswagon. The corporation shared over $900 million (U.S) with their workers after a highly lucrative 2012 that saw the company boosting revenue 20% to an incredible $252 million. Volkswagon made over $8 billion last year after taxes, and have given a considerable amount of that back to over 100,000 of their employees. Each employee stands to receive a bonus of a little over $9000.

''Profit sharing is hard earned and deserved; it is the equitable participation of employees in the success,'' said VW board member Horst Neumann. ''The Volkswagen team has done an excellent job in 2012, and this team effort pays off for everyone.''

Profit-sharing isn't just for automobile manufacturing behemoths, however. Defender Industries, a boating equipment supplier, thinks its profit-sharing structure has been integral to its success. They may be right. The company has nearly tripled its sales during ten consecutive years of growth.

"We are doing something that rewards staff for exceptional performance and doing it in a way that is proportionate to their contributions," says Executive Director Al Knupp. "It makes them vested in the success of the company."

Knupp adds that no bonus is guaranteed from year to year, which has contributed to the company's self-governing atmosphere. Employees are paid bonuses in proportion to their responsibility, and so there is plenty enough on the line for everyone to ensure that they all push each other to grow the company. Defender Industries also report that such a program has increased employee retention and satisfaction, so if you are looking for a long-term job with plenty of motivation and a nice paycheck to boot, you might want to try out one with a profit-sharing philosophy.

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