Scaling Growth with Salary-Based Profit Rewards

This is a pool-based, performance-driven plan designed to reward employees when both gross profit and net profit goals are achieved. By combining individual contributions into a shared bonus pool, employees are motivated to drive sales and efficiency, while the company protects the bottom line.

This plan follows a quarterly schedule, keeping the team connected to daily efforts while working toward bigger goals. It matches how performance is already tracked, helping everyone stay focused and energized year-round.

Payouts are based on company profits, so the more the business earns, the bigger the pool. This simple link builds buy-in and encourages everyone, from technicians to office staff, to work together toward success.

The plan is triggered by two performance conditions:

• Gross Profit, ensuring jobs generate enough revenue to keep the business strong.
• Net Profit, with seasonal targets so employees are not penalized when business naturally slows.

Once both are met, 10% of profits above the net profit target go into a bonus pool. Shares are divided proportional to salary, reflecting role and responsibility.

Bonuses are paid within 30 days of quarter close, creating a fast, motivating cycle that keeps momentum high.

This plan is best for owners who want a profit-sharing program that rewards their team fairly while protecting profitability. It’s especially valuable for: 

• Growing teams with different roles and pay levels, where it's important payouts match responsibility and contribution 
• Owners who want to keep things simple and transparent, using clear profit triggers and salary based formulas everyone can understand 
• Companies with seasonal ups and downs, who need flexible targets that reflect the real rhythms of service work
• Leaders focused on retention, who want higher-paid, harder to replace roles to see the upside of the company’s success 
• Owners building a performance-driven culture, where every job, install, and upsell contributes to shared rewards 

If you want a plan that scales with your business, treats employees fairly based on their role, and keeps everyone focused on profitability, this structure delivers exactly that.