- 06 Jul
OpenWorks Rewards Employees with Profit Sharing Initiative
Big news! We recently launched an initiative that shares the company’s profits directly with our employees and rewards them for their contributions to the success of the franchise.
In January, we began a net profit sharing program for all of our employees across the county. Basically, we will provide bonus payments to our employees based on if the company approaches, meets or exceeds their targeted net profit goals. These bonus amounts are determined by a percentage of the employees’ pro-rated salaries.
OpenWorks’ net profit sharing plan rewards employees with bonus payments through three tiers of payouts based on the company budget:
- Threshold bonus – the reward incentive attributed to attaining the company’s threshold net profit amount. The 2015 threshold amount is calculated at 30% of the target bonus payment amount.
- Target bonus – this amount is calculated using a specified percentage of base pro-rated salary. This percentage is determined based on position, salary and eligibility in other variable pay programs.
- Stretch bonus – the bonus amount attributed to reaching the stretch amount for the net profit. This level is 120% of the targeted bonus specified.
We decided to establish this initiative as a way to motivate and incentivize our workers, and increase engagement across various regions and departments. This initiative is also to increase collaboration The positive effects of the program have already been realized, as the company reached our target bonus (120% to target) in Q1 of 2015. Therefore, all OpenWorks employees received their first bonuses in early May.
Our Founder and CEO Eric Roudi said the profit sharing concept was a way to drive engagement among our employees and departments while rewarding them for their contributions to the company.
“We all work together to achieve the same goal at OpenWorks, and we believe people should be rewarded for their performance,” said Roudi. “When OpenWorks succeeds, so do our outstanding employees throughout the system.”
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