Dick Erickson, Founder of Sun Tire, talks about profit-sharing at Wise Counsel 2020 Boot Camp.

Dick Erickson (left) and Skip Alcorn.

Dick Erickson, Founder of Sun Tire, has some interesting insights about profit-sharing. He shared some of them at the 2020 Wise Counsel Boot Camp in Jacksonville, Fl.

Why share profits with all employees?

Some companies share profits with leaders and managers. Other companies provide profit-sharing after an employee has been at the job for a designated period of time or has been promoted to management. Very few have policies to share profits with all employees. A defined profit-sharing plan can set a company apart from its competitors.

How does a company benefit from sharing profits?

The speakers at the 2020 Wise Counsel Boot Camp.

Employees are more engaged and have a better focus on customer service and making customers happy. Happy customers come back, and they also provide referrals and recommendations.

Employees put more effort into their personal appearance and the way they come across to customers. They are also more conscientious about the appearance of the storefront or workplace.

Employees want fellow employees to be productive. If someone is lazy, other employees won’t be happy about that.

Employees take better care of equipment because they know that helps profitability.

Shrinkage is reduced because employees know that if they steal, it comes out of the profit-sharing.

Employee turnover is reduced because employees are getting something they may not be able to find elsewhere.

Employees at every level think more like managers. For that reason, there is a reduced need for oversight and/or middle management. Employees really want to do a good job for the good of the company and because it will improve their bottom lines.

You can get more information about Dick Erickson's approach to profit-sharing from his book, which is available in paperback or on Kindle through Amazon.

https://www.amazon.com/How-Rubber-Meets-Road-Entrepreneurs/dp/B08KH2K9L6