Short video by Mike Andes arguing that employers should share profits with employees. He contends profit sharing benefits employees (higher pay, ownership mindset, career skills) and employers (less micromanagement, reduced waste, improved profitability) and recommends sharing profit figures and payouts even when profits are small.
Is it really fair that all the profits for the entire business goes to one person, the owner? Or do you really think that the employees even deserve a chance at getting a piece of that pie, a piece of the action? I'm like Andy's, I own multiple businesses and every single one of them have some sort of profit sharing program for the employees. I truly believe that's better for the employee and the employer and the business by having a profit sharing in place. I'm going to talk to you about why that is, first and foremost, why is it better for the employees if you have profit sharing? Obviously they're going to make more money, but more importantly, it starts to get them thinking about business, about the bottom line. And instead of just coming to work and feeling like a cog in the machine, they actually are invested in making sure the business is profitable and efficient. And they start looking at their daily functions and daily operations and their job as a piece of something that's bigger, the entire business and the bottom line. Because at the end of the day, that's what contributes to the bottom line is your front line employees, the people doing the grunt labor, are the ones that actually make the money for the business, not making executive decisions and brainstorming about the future. It's the people on the that are actually making the money for your business. And they're the ones that have the most direct impact on the bottom line. So why should they not be getting a piece of it? Why is it better for the business though? Why is it better for the employer? Because a lot of people I already know in the comments are thinking, I invested in the company. I was the one that risked capital. I was the one that came up with the business idea. Why should it be that I am sharing the profits? The profits of that work and that risk. Why do I have to share that with other people? It's not fair. It should. Like, this is mine, this is my business. I'm the one that should get all the profits. Here's why it's actually better for you to share the profits for your business as the employer, as the business owner, first and foremost is you don't have to micromanage your employees when they actually care about the bottom line. You don't have to tell them to be more efficient or cut off this waste or be watching over their shoulder all the time because you know that they're now invested in making sure that there's profits at the end of every single quarter. You don't have to worry about them breaking things. You don't have to worry about them wasting the clock, sleeping in their truck, being wasteful. Now you can actually count on the fact that they're gonna hold each other accountable, their co workers. They're not gonna allow them to be sleeping on the clock and breaking things for the business or getting away with little loopholes and how they can burn time out in the field. You're not gonna worry about that because now every single one of those employees are thinking like an owner. How can we save money? How can we cut out the waste in the business? How can we be more profitable? How can I upsell a customer to generate more revenue for the business? That is what makes it better for the business. Not only does the employee make more money, but you as the owner now don't have to micromanage and be in every single operational task within the business. Because now you've got a whole bunch of employees going around looking out for the bottom line, looking out for the best interest of the business. I don't recommend that you give people a percentage of the revenue. I want them to see a piece of the bottom line so that they actually think about waste and inefficiencies and cutting out the waste in the business. Because there's so much waste, whether it be labor or materials, there's so many different areas that your frontline employees right now, they don't care about because they're not getting a piece of the action. And if you want your employees to think like owners, you've got to compensate them like owners, and you've got to give them the information like an owner has, and profit sharing is a piece of that. I highly encourage you. Even if right now you're not making a bunch of money, you don't have a lot of profits, Start sharing your numbers and giving a piece of those profits to to your employees. It's better for them, their future, their careers. They start to learn skills about management and managing their own time and being more efficient. That sets them up for success, and it helps the business be more profitable in the long run. I'm Mike Andes. Landscapebusinesscourse.com we'll see you tomorrow. Thank you so much for watching the video. I really appreciate it. Make sure you check us out on Facebook, TikTok and Instagram for daily posts about lawn care, landscaping, and making money doing those things.
