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4 comments

This method only works when profits are consistently small. Some businesses really do have large profit margins.
Many have fluctuating profits. When employees see a couple good months they don't think about the bad months that those temporary gains might have to cover.

So, sounds like a great idea but only for a few business types.

[–] fusir [OP] 1 points (+1|-0) Edited

Maybe its a good opportunity to address the fact that businesses shouldn't be ashamed of profits and that really employees are paid for deltas in profit.

If we think of employees in terms of generations, about 10 years in length, then if the prior generation through sweat created a turn key business that generates an ROI of 7% per year, the next generation is working on making it 8%. Profits are measured by comparison. The next generation only deserves access to the 1% they generated and only a share.

These are managerial accounting principles employees need to learn.

Besides, the final earnings report is not hard for people to gain access to and if you are a large business it is definately accessable. You might as well help them to understand what created it.

The only party I wouldn't want seeing that stuff as a large business is compeditors (and employees who want to be compeditors).

The only part you're wrong about is thinking that employees are going to be willing to learn that.
The world is not governed by facts and reason.