In a tough labour market, finding talent is a challenge – so it’s especially important to retain your good workers. Profit sharing can help with this.
NZ company Mainfreight has had a bumper couple of years; the transport and logistics industry boomed during the pandemic and shows no sign of slowing down. In 2022, Mainfreight paid workers a total of $94 million in bonuses, double what it paid out the previous year. The company also used 15 pages of its annual report to thank its 10,393 employees, printing every single name.
This might seem like an extreme move, but every employee wants to feel appreciated. Paying a bonus to every worker at the business, not only the managers, strengthens the feeling of working together as a team.
Spend more to make more?
Profit sharing and profit-based bonuses can help your business in several ways:
- Your staff feel appreciated
- They’re incentivised to grow profits – if the business does well, they’ll be rewarded
- Hopefully your people will stay with your business
- It should build your reputation as a good employer, making it easier to attract new talent.
We can work with you to come up with profit-sharing agreements or bonus structures that will be a win-win for your business and your team. Get in touch, we’d love to help you grow or develop your business’s talent.
Have a spare 2 minutes? Read some tax tips for small business here.