"We announced it a year ago and told employees we have two goals. One is to make more money, which is obvious. The more important one is to cut costs. The idea was that the more efficiently they work, the bigger the pool of money they'd get to share. It was a little bit of a shock at first. People are used to getting bonuses or stock options, so profit-sharing took a little bit of explaining."
"Any profit beyond that threshold goes into the profit-sharing pool. Each eligible employee's share is calculated by dividing their salary by the total number of eligible salaries, then multiplying by the amount in the profit-sharing pool. Say an employee makes $100,000 a year, and the eligible employees' salaries total $2 million, and the profit-sharing pool is $300,000. The employee would receive 15% of their salary, or $15,000."
MassPay created a profit-sharing program to encourage employees to adopt AI tools and capture cost savings. Employees initially feared job loss and misunderstood AI's role. The program sets aside operational and growth funds; any profit beyond that threshold funds a profit-sharing pool. Each eligible employee's share equals individual salary divided by total eligible salaries, multiplied by the pool. An example yielded a 15% salary payout. Participants received 18% of annual salary from the program last year, with expectations of close to 50% this year. The program increased efficiency and allowed the company to reduce hiring.
Read at Business Insider
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