Tag Archives: financial

Employees aren’t Partners

Many of my clients are recovering from the recession. They are running lean, and have restored their profitability, even if at lower revenues than prior to 2008. Those that had to reduce or freeze employee compensation are seeking ways to … Continue reading

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3 Responses to Employees aren’t Partners

  1. Ted Reynolds says:

    This is an excellent article and I completely agree with the concept that only Exectuive Mgmt should profit share. Incentive based pay for the employees is a good practice, but needs to have flexibility to ebb and flow with the needs of the business being met first and foremost.

  2. Larry Amon says:

    John, I disagree. I used profit sharing with my employees for 15 years. Each employee in my company contributed to the profits of the company. We were a maufacturing company and everyone contributed, not just the managers. We did set up a system whereby each employee’s share of the profit was based on compensation, years of service, and a performance factor. We met monthly with all employees and reviewed our financials with them. They knew where they could help by controlling expenses and where they could cut costs. they knew the cost of the materials that they were using in the process and could increase the yield and productivity of the operation. When the company was sold the employees were given over $500,000 to be dived up according to the previous criteria. After 25 years they are still there.

    • John F. Dini says:

      That sounds lile a great system, Larry. I note you said “performance” was a key criteria. I have absolutely no problem with using company profitability as a funding scale for incentive programs. My piece criticised companies that distribute profits as an entitlement, without defining what individuals need to do to earn their share.

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Profits and Savings aren’t the Same Thing

How much profit will you make this year? If you are like many business owners, the answer is “We’ll see.” They consider profit to be the amount left over after all of the business expenses are paid. That’s an accounting … Continue reading

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You can’t keep a good saying down.

“There are lies, damn lies and statistics.” It’s a great saying, and in the USA is typically attributed to Mark Twain. He, in turn, attributed it to Benjamin Disraeli. That credit is undocumented. What is certain is that it was … Continue reading

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With My Apologies to Ray Davies

“Sooo tired, tired of waiting. tired of waiting for youuu.” For those of you who weren’t weaned on British Invasion Rock’n’Roll, Ray Davies is the lead singer and songwriter of The Kinks. One of their earliest hits was “Tired of … Continue reading

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Socialized Medicine, or Capitalized Medicine?

In 2000 I was asked by a client to make a single business prediction for the new millennium. It was “By 2011, we will have some form of national health care plan, and small business owners who have been priced … Continue reading

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