Elevating growth incentives for salaried employees

This profit sharing plan features a "pool" design where profits are shared with a pool of employees once a company goal has been reached. This design focuses on 1 high-level metric (net profit) to increase visibility of what's most important to the business and makes it simple for employees to understand how to influence company growth.

This plan follows a quarterly schedule, giving the team a rhythm that’s fast enough to stay connected to their monthly performance, but long enough to chase meaningful goals. It aligns perfectly with your current performance periods and helps the team stay focused throughout the year.

Payouts are calculated based on total company profits, so when the business does better, everyone sees the impact in their bonus. This simple formula builds real buy-in and reinforces a shared commitment to the company’s bottom line.

The plan is triggered by one performance condition:

• Net Profit, with seasonal targets tailored to your business’s ebbs and flows. This ensures that employees focus on what’s coming through the door without being penalized by seasonal shifts.

Once the profit trigger is met, 5% of total profits are allocated into a bonus pool for the quarter. This amount is shared equally among participants, which encourages collaboration, shared accountability, and peer mentorship—especially important as the team grows.

Bonuses are paid out within 60 days of each quarter’s close, reinforcing the connection between strong performance and timely reward—keeping momentum high and engagement strong.

This plan is ideal for owners of growing service-based businesses who want to scale quickly while keeping their team focused, motivated, and aligned with business outcomes. It’s especially useful for:

• Small teams looking to grow fast, where collaboration and shared accountability are critical to success
• Owners who want to reward execution and results without giving up equity or ownership
• Businesses with seasonal cycles, who need flexible targets that reflect the real rhythms of their work
• Leaders who want a simple, transparent way to share profits that ties bonuses directly to revenue and bottom-line growth
• Owners building a performance-first culture, where every job, install, and upsell contributes to a shared reward
  

If you want your team to think like business partners and act like growth is personal, this plan gives them the incentive to do exactly that.