Comment It used to work for me (Score 1) 69
As a side note, it always worked well a few hundred feet from my house, so I assume that the back end was working OK.
Back when Hewlett Packard was one of the greatest companies in the world they gave 12% of pre-tax profits as 'Profit Sharing.' Profit sharing was paid out twice per year. Almost everyone in the company was included. In good years each profit sharing check would be close to one months pay, in bad years they would be much smaller.
HP no longer gives the 12%. Agilent (a spin off of HP) doesn't have any profit to share, and if they did they would give far less than 12% of pre-tax profits. They both have changed to formulas based on factors like return on assets and revenue growth, with an explicit goal of sharing less of the profit.
Profit sharing had the obvious motivational benefits, but it also made employees feel that they were part of a great company and not simply cogs in a machine. This was part of what made HP so successful.
You can debate whether HP was so successful that it could afford to give 12%, or was HP so successful because it gave 12%. My belief is that profit sharing was one of many things that made HP great. By itself it neither makes nor breaks the company, but it was one important factor in HP's former success.
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