Even the thought of profit-sharing seems to make managers cringe as if they were a claustrophobic and you had just asked them to enter a crowded elevator. This typical programmed response from managers is unfortunate because profit-sharing could be their best friend and most managers treat it like their worst enemy. They are far more productive than any other class of people. Knowing this, why don t we try to figure out what makes them efficient and then use this knowledge to improve the productivity of all employees. It is ridiculously simple.
Entrepreneurs are so productive because their paychecks are always on the line.
Their compensation is directly related to the performance of their businesses. If entrepreneurs do not make money at their companies, they do not eat, make the car payment, or pay the mortgage. Contrast that with employees who get paid a fixed wage. If the business makes ten dollars, they get paid the same. If the business makes ten thousand dollars, they get paid the same.