General > Beating a dead horse
Factory Direct: What does it mean?
Mendocino101:
Chas
Do you really believe that each and everyone of your employees who are not in family cares about your business in the same way you do....as a small busniess I am sure they care much more so than do most but how many have worked for you and you have shook your head at some of the things they have done that you yourself would never do.....and yes I know memebrs of our family can do the same thing... ;)
Whose Wall street......a small little place in New York.....but they are the reason that some companies have to find a way to save penny here and nickle there....even if it means that by doing so you are shaving down some of the little things that really made your product but hopefully it is things no one will really notice ...like the type of screws used or getting away from braided lines....
Brewman:
As Drewstar said, it's doesn't automatically do anything (employee ownership). But what do you think, from a bigger picture perspective, motivates people more-
The potential sharing of the wealth of a successful company, or the threat of termination if you don't succeed.
If all you get out of a job is a paycheck (and maybe a few benefits) you can get that by just doing enough to get by. But you may go above and beyond the call (something many employees don't get extra recognition for) if there is some type of reward for your extra efforts.
Now that we're not employee owned anymore, we have instead an incentive compensation plan in place that rewards employees for the same type of work- but we get an annual bonus instead of stock.
If the company reaches certain benchmarks, laid out to all employees early in the year, a certain amount of money is put into a bonus pool. This is the base. As we exceed our benchmarks, more money is added to the pool, and the rate of increase is greater the more we exceed the goals.
Then the pool is split among the employees and paid out just before the end of the calendar year.
In order to recieve the pool money, you have to be performing- you just can't "get by".
This program has been in place since about 1999, and the annual payout for me has never been less than about one months extra pay (on the lowest.)
So far the best has been about 4 months pay.
Typically it's around 2-3 months pay.
The founder of our company has written a couple books on the subject of employee ownership and similar concepts, and he tells it WAY better than I can.
In order for it to work, the leadership of the company has got to believe in it, and so do the employees.
Navigation
[0] Message Index
[*] Previous page
Go to full version