My answer to Would it motivate Sales-Employees if you'd give them 2-5% of the profit earned aside from their usual …
Answer by Ken Larson:
Profit sharing via bonus is a feature many companies have used. It’s main weakness is that not every employee benefits, only those in sales positions. In some cases that can be a disincentive rather than an incentive for the rest of the work force.
Monetary return is not the only way to motivate a work force. A good, well run performance review process for employees works well.
- Setting objectives at the employee level tied to the company mission
- Recognizing difficulties and assisting in resolving them for the employee,
- Fair and open assessment of progress
- Monetary return based on results
Recognition programs giving visibility to high achievers, teams and team leaders is another motivator.
Involve the employee:
- Know how much leadership to offer and how much to let the individual grow on his or her own.
- Strike the right balance between specific and generic guidance so the unique individual traits of the workers come through in the business model and solutions to problems, system design and success of the firm are derived from the people running the enterprise.
- Manage constructively by fostering an environment respectful of all points of view but manage by drive to fulfilling progressive objectives as a first priority and blend differences of opinion decisively.