Profit sharing for new business

[sola7114]

I'm starting my new EC bussiness and would like to start some sort of profit sharing/ bonus for my lead men to help them feel "engaged" and "excited" about our new journey

Any suggestions on what's the best way to handle this?
What's the industry standard on percentages .

Any help and suggestions would be greatly appreciated .. As A happy electrician is a profitable
One... Theoratically speaking

 

[petersonra]

Personally, I think if you want to have profit sharing it should be company wide. Giving it to just a few people is likely to lead to some friction.

My suggestion would be to make it part (or all) of your 401k plan.

Maybe your contribution should be something like 50% of the employee contribution up to some number like 3%. With an extra 2% available based on company profitability.

Lead men are regular non-exempt employees anyway. Why would you want to treat them different than the rest? It is understandable for management and sales employees that some chunk of their compensation is performance based. Not so much for non-exempt.

 

[cadpoint]

Up to minimun 6% by an employee to contribute is a gooding standard for 100% Co. match and vesting requirement of up to a year before full (others can be longer) vesting from date of start/hiring. Most company hold off 90 days to start anything.

You might pay a service once to open your employee's account etc. but you have to understand all the costs, and each employee also can see a cost.