How profit-sharing programs can help employees manage inflation

With the Great Resignation and "quiet quitting" continuing to make headlines worldwide, employers are desperately trying to find initiatives that will excite, engage and ultimately retain employees. The workplace has changed, especially since the onset of the pandemic. Employers are looking for ways to not only retain top talent but provide a hedge against record inflation and escape the specter of a looming recession. 

One way we at Cyberbacker have found to actively engage our associates amid a challenging job landscape is to provide a robust profit-sharing plan. While the concept of profit sharing is nothing new, in this new world of work, companies are now revisiting it as a tool they may have previously dismissed. 

It's no secret that wages have not kept pace with the rapidly rising cost of living, especially in the U.S. Low wages and rising costs are a global problem, and many people have struggled to support themselves, their families and keep a roof over their heads — even as they work full-time positions. Often, when a company shows increased profits, a hefty share of those increases goes straight to the CEO and high-level managers. Workers may see minimal benefit from higher profitability. 

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Companies that institute profit-sharing programs, coupled with comprehensive training for career advancement and other employee-centered benefit programs, pose a range of positive benefits for both employee and employer. 

News from some of the world's biggest corporations at a time of high inflation and low wages has fueled quiet quitting. Workers are less likely to be receptive to reports of record profits while struggling to simply get by. By introducing a profit-sharing program and listening to the wants and needs of one's employee base, companies can avoid the work-exodus crisis, as well as keep their employees happy and engaged.

Building loyalty
Employees who can feel the direct, immediate benefit from company profits will be more likely to stay loyal to the organization. The ownership they will take on with their individual role within the company will strengthen as they begin to see the direct correlation between their work and wallets. 

Beyond mere compensation, which in some areas of the world has remained relatively stagnant and not kept up with cost-of-living demands, profit sharing blazes a direct path between work and reward. Productivity increases as people see that what they do within the company is recognized and monetarily rewarded. 

When we developed our profit-sharing plan, direct input from our Cyberbackers was sought regarding what they wanted from such a program. Giving team members a chance to grow their wealth alongside the company, much on their terms, has been a game changer. We were able to profit share more than $874,000 by the end of 2021, and that number only stands to increase as we franchise the business and continue to scale rapidly. 

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With our company growing and securing more than 30 franchises in its first year, the profit-sharing program has served as an incentive for everyone to be just as excited about our growth as the people at the top. This has created loyal team members who are happy with their positions and willing to sing the praises of our company at every opportunity. Within an uncertain work landscape where people are frequently quitting their jobs, our strong profit-sharing program has allowed us to attract and retain top talent.

Growing together 
Much like many in the U.S., a good portion of our Cyberbackers in the Philippines are part of the so-called Sandwich Generation. These people are simultaneously caring for young children and aging parents. Such familial obligations have become more challenging in this age of rising costs, inflation and possible recession. They are also concerned about not when they will be able to retire, but if they even can retire. With prices rising and a comfortable retirement falling further out of reach for many, companies need to do their part to support employees' futures.

With solid profit-sharing plans, companies can help employees better support their families and save for retirement. Some plans have significant tax benefits that allow employees to shelter their profit shares in tax-deferred programs such as 401(k)s. 

Through our successful profit-sharing program, we've allowed our team to grow their careers, save money and live fuller lives given the average compensation in their home country. 

The antidote to this historically challenging job market may be an innovative and strong profit-sharing program that allows employees to take ownership in growing your business together while also improving their lives.