Topic: Don't you think it's moral to share profits or losses with business owners? (Read 772 times)

The thing about a worker and the business owner is that the worker is being paid a certain percentage of his efforts by his employer and if the company loss or gain sometimes it affects the salary by an increase or decrease but then having to share the profits and gains with your employer,I don't really think there should be need for that.

Oh, this eternal conflict of interests between the business owner and the worker. The 1st wants to pay less and get more productivity from the worker, and the 2nd - everything is exactly the opposite.

Depending on the conscientiousness of the worker (to perform work duties), the "morality" will differ. It will be beneficial for a diligent employee to share profits and losses with the business, since the well-being of the company, and therefore his personal benefit (salary), will depend on his actions. In general, this exists in world practice and is expressed in the fact that companies, in addition to wages, issue employees shares in their company, which will grow in price (and therefore the employee's income), if this employee does his job well (but this is not certain ). It is beneficial for a lazy worker to "sit" on a fixed salary, since even doing a job badly, he will receive a salary every month. Of course, such employees are not beneficial to the business. It is also not uncommon for a business to "become impudent" and demand that employees perform such a volume of work that exceeds the salary. In this case, such conditions are disadvantageous to workers.

A solution can be found in the following scheme: fixed salary + % of company profit. If the employee is diligent, he will receive a salary increase, and the business will receive increased productivity. If the employee is lazy, he will not receive bonuses, but the company will not pay "undeserved" money. The problem in this scheme is the "fair" choice of bonus %, which would satisfy both sides of the business.

When I own a public company which I have plan on doing in the future, all my employees will own shares in my company. I'll use some part of their salary to buy them the shares or they'll receive payment for some months in the stock/shares of the company to motivate them to work with the company and not work for the company. Most employee are only there to work for the company and don't care about the wellbeing of the company. Employees don't know the work that business owners put in, they only want to come to work from 9-5 and get paid at the end of the month irrespective of their efforts bringing profits or lost to the company.  

Yes, it is very difficult to share profits between the company owner and his employees, and it has been arranged in such a way that employees only get a monthly salary, everything has been determined, employees need to save and stand alone in pioneering the business they want so that they do not depend on their permanent jobs whose income is regulated by the company.

This is not about having a business, being the employee, or the employer, but about giving a general opinion on how the OP feels this should be done in order to boost the performance of workers all around since it will not be as a partnership business where what you earn is based on how much the company is able to realize or make at the end of the month—that's if things are being done transparently and nobody is being kept in the dark. On the other hand, the employee will also know before the end of the month that earnings are not as usual.

If you want to get a share from business' profits, then become a share holder. You can acquire assets from the company, and this way you are owning a piece of it. If it's the company you are working for, you can use your wage they pay you to buy the assets. This is the only viable alternative, I suppose, because it's not of the company's interest to turn every employees they have into partners. In the end, the company's owner will have all the burden of the management work on his shoulders, but at same time will have to share all the profit equally among every employees who are just following orders, without having to worry about anything else.

She just put 2 million into a new business? Sounds like it would have been a better idea to start a small business and get some experience and feel things out, before making such a large investment. Nobody can tell what the future has stored for us, which is why it is important to make concrete decisions without flip flopping on them later in the future.

But some people get too overwhelmed and make rash decisions out of fear that something might change for the worse...

I have a cousin she worked for an internet startup in the 90s they paid her 401k in company stock. From 1995 to 1999 the stock mooned the 401k became 3 million dollars which was close to 30 years pay for her in 1999 dollars.

She quit. Cashed out the 401k paid the tax and had 2 million opened her own business  and went broke.

If she left her 401k alone and just worked she would now have a 15 million dollar 401k to retire to.

Employees are entitled to their salaries and if an employer wants to boost the productivity of workers, he can add some benefits to the pay according to their contribution to the company. Or some societies can be created for employees to help each other in financial matters. Because when the company's services are handled by people who love how they're being treated. The outcome of their business would be top notch and very quality.

However, such offers can vary based on the business's progress. Because when not done the right way growing companies can develop financial crisis.

In economics, the reward for entrepreneurs is profit or lose, while the reward of workers is their wages or salary, that is the format and hierarchy as i know it. The moment your employees starts to share profit and lose with you, that means that they have automatically become your business partners. That means that they have a say in how your business is run because if you don't make profit, they will be affected negatively. What if they have the necessary skills to do their work but lacks managerial skills to co run your establishment, then it won't make much sense.

Business owners should take full responsibility of their businesses and let workers to be entitled to their wages, while the profit and lose should be for the owners. A proactive employer can decide to share excess profits with the employees as an incentive to them to work harder to get the rewards again.

You raise a good point about responsibilities. The employees never agreed to manage the business on a large scale but the business owners knew the risks and implications of starting their business. If we apply this logic, should it mean that if the business is doing well the employees get the same amount of money the business owners get? Of course not. The business owners benefit directly from the profits while they only share a percentage to their employees. It is up to them to make sure that they do not reach a point where they can no longer pay their employees.
Business is not an easy job. It requires you to be knowledgeable about many things. Financial, marketing, management and many more. I have never met anyone who started a business and says that they have never encountered a challenge ever. But the thing with businesses is you should know how to bounce back.

Different responsibilities will give birth to opposing views between business owners and workers even though the end result is profit.
Business owners have a much more important role because they have to ensure that the business runs well while the employee's job is only to ensure that sales can run normally.
No one is ready for the same responsibility where the owner or worker will share the same profits and losses because usually workers think more about salaries.

It is not easy to develop a business because it may require ideal abilities in creating innovations that make customers interested in shopping with us.
These three things may need to be prepared so that the business being developed can run successfully.

If anyone will share his profit to business owners then he will get good opinion from them because they always face peak and deep in life and they know well about the market situation. You should share our ideas to the the rich person because they will guide us and we will be successful in future. Businessman opinion is very important in life because they are successful because of their strategies they used and they are doing the thing which poor people are not doing.You should share all our plans to rich people and we should learn from them because they can guide us well and our future will be bright because of their opinion. We can face big lose but don't lose hope in that days and continue struggle and you will be successful.

Can you also establish a business and share the same equal profits and loss with your employees, we should maybe begin to start putting ourselves into the same condition that applies on others before making any conclusion yet, those that doesn't have a well establish business may be the ones bringing such suggestion, because a standard and profitable business cannot thought of bringing up this kind of idea on the table.

There are different businesses practice going on and not only the fixed salary type of practice or haven't you have about commission based payments that your salaries is based on your work rate for the month.

Many small businesses are using it and it's been productive to them because it gets their workers to be serious with their job and referral more people to the business. They are some business that you shouldn't be using a fixed salary for.

A perfect example is real estate business that the salary of your workers should be commissioned based as this encourages them to bring more buyers by developing their own marketing strategies and you get to benefits too as the company owners.

Paying real estate workers salary will make them lazy and they mightn't even sell any property for you by the end of the months.

In most organizations, people are already paid based on their contribution to the company. The salaries are never the same and that should be in agreement with your suggestion. It is only in the public sector we see these wastages and unproductivity. However, that is not the case in some countries because they have a working system that is able to identify the talents and high contributors and reward them accordingly by placing them in position of authorities with added benefits. As for the other countries where it is business as usual, there is nothing that can be done about it since their system of government permits such unproductivity.

they are the capital owners who open businesses with a profit-sharing system, they are those who are not yet sure about the prospects of the business they are building. Because if the capital owner is sure that the business they are building has prospects and produces clear profits, then the capital owner will choose to recruit employees. Because the capital owner knows that when they use a profit-sharing system, the profits they get will be less than hiring other people. and usually capital owners who have been in business for a long time will choose a system like this

However, when you are a person who is new to the business world and becomes a capital owner, it would be better if you use a profit-sharing system, because by using this system you will be able to minimize the losses that occur. Because you only need to spend the initial capital and after that get profit, if you win the business runs well. but if the opposite happens, you can minimize the loss, because you only need to provide additional capital without having to think about how to pay wages to employees.

Business owners often give incentives to workers who make a big, positive impact on the company’s growth. And for those in higher positions, salaries are usually higher. I believe owners offer fair pay to their staff, in line with what’s required by law, at least here in my country.

Honestly, as workers, we all want higher salaries, but we also need to understand that business owners are doing their best with what they can give, especially since they have a lot of expenses to keep the business running. As they say, even if the pay isn’t huge, having a job is better than having none. Plus, if we want more income, we can look for additional ways to earn. It’s important not to just look at our own needs but also to consider the owner’s situation.

Yes I agree with you that workers mistake can ruin the company or management, but do you also know that the employers mismanagement can also ruin the company?yes. so we can't only see it from one side, the profit or loss is always two sided meaning the loss can come from the employee or from the employer. Now it is the obligation of the employer to manage the welfare of his company both his own aspect and that of the workers to make sure that there is a balance. But the fact still remain that no matter how a company is managed, they must surely run loss. Sometimes it could be a simple mistake of employee or employer that will Leed to the loss. But although it depends on the type of business before we can talk about shearing profit or loss which I have already made it clear from a quote above where I stated that profit or loss sharing depends on the type of business you can check here.

If the profit and loss of a business is divided among the workers after a certain period of time, it will be seen that the company is getting destroyed day by day. Because when the price of a company's product goes down, the workers will not get fair pay for their work. In this way, the family will not be able to run with the money that the workers will get. As a result workers in the company will show reluctance to work and leave the company.
On the other hand, if the company owner pays the workers weekly or monthly according to their dues, the workers will get paid on time. Due to which they will have interest in work and product production will increase.
Later, when the production of goods in the company increases, increasing the salary structure of the workers will increase the production capacity. All in all then company owners will be profitable as well as workers.

Because of which I think that if the profit of any company is divided among all, the company's product will not be produced but the company will be destroyed.