Jack’s Empowerment and Inspiration: 64. PROFIT SHARING FORMULA - Jack’s Redundancy Empowerment - empowering redundant workers - empowering redundant staff

Friday, 28 November 2025

64. PROFIT SHARING FORMULA - Jack’s Redundancy Empowerment - empowering redundant workers - empowering redundant staff - Yinka Carew

64. PROFIT SHARING FORMULA - Jack’s Redundancy Empowerment - empowering redundant workers - empowering redundant staff - empowering redundant employees - making redundancy work for you - is redundancy a dead end? - is redundancy the end of the road? - making the most of redundancy - empowering the redundant worker - Jack Lookman - Rita Nnamani - Olayinka Carew - Ola Carew - Jack Lookman Limited - Amebo - Ire o - Ire kabiti - Empowerment and Inspiration - Empowering And Inspiring Generations - Yinka Carew - Olayinka Carew aka Jack Lookman - Jack’s Empowerment and Inspiration

Most workers don’t think about profit sharing unless they are in a senior role or working for a company that offers it. But after redundancy, understanding the idea of profit sharing can reshape the choices you make moving forward. You begin to see employment not just as a place where you exchange hours for money, but as a place where you can grow financially alongside the organisation. Profit sharing is essentially a formula that determines how much of a company’s earnings is distributed to its workers.

When companies use a profit sharing formula, they allocate a portion of their profits and divide it among employees based on predetermined criteria. These criteria may include salary level, years of service, performance rating, job classification or a combination of factors. The formula might reward everyone equally or weigh contributions differently based on responsibility. Knowing how this structure works helps you evaluate whether a future employer is committed to valuing its workforce or simply using its staff as labour.

For many redundant workers, profit sharing can become a factor when choosing their next role. Stable companies that offer profit sharing usually have healthier financial foundations. They are often more transparent, more employee-focused and more committed to long-term success. A company willing to share profits tends to value loyalty and collaboration. It sees its workers as partners, not replaceable units. This alone can create a sense of belonging that reduces the emotional vulnerability caused by redundancy.

Understanding the formula also helps you detect fairness. If a company distributes profits solely to executives while lower-level workers receive nothing, it signals a culture with limited upward mobility. But when profit sharing trickles down to all staff, it reflects a more inclusive value system. Workers thrive in environments where contribution is acknowledged. Profit sharing often builds that atmosphere naturally.

Some companies use a percentage-based formula where each worker receives a share of profits proportionate to their salary. Others use points, where years of service and responsibility create weighted values. Some use flat-rate systems where everyone receives the same amount regardless of position. Each system has pros and cons. Flat-rate models create unity but may frustrate high performers. Salary-based models reward contribution but may widen inequality. Point-based models encourage loyalty. Understanding these structures helps you choose an environment aligned with your values.

Profit sharing can also influence your negotiation. If you understand the formula, you can ask better questions during interviews. You can enquire about how profit is allocated, how often distributions are made, which positions qualify and whether bonuses depend on individual performance or company-wide results. These questions show employers that you think like a professional who understands business, not just an applicant searching for any role.