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How Profit-Sharing Plans Benefit Your Business

November 20, 2020

How Profit-Sharing Plans Benefit Your Business

2 Minute Read

Exploring three common reasons for employee ownership models and the impact it can have on your business.

Eben Louw
Eben Louw, CPA, CA

Through client conversations and presentations to industry groups, we have found a few core reasons why business owners are looking into sharing ownership value and growth with their employees.


Here are some key reasons why companies are considering sharing employee ownership, and how it is helping them accelerate growth:

  • Retention: many industries have seen a large-scale struggle to retain good talent. Sharing ownership in the right way with the right employees encourages them stay. Even just the process of building such a plan builds loyalty and demonstrates to employees that the owners care.
  • Retirement planning: business owners felt strongly about creating a structure that allows for their employees, who are typically not members of any formal pension plan, to build retirement capital through their daily work activities.
  • Transparency: business owners are increasingly looking for ways to make more of their team members feel like owners, either by actual ownership or by cultivating an environment in which they feel and act like owners. In many cases, the owners want to structure actual ownership along these lines as well, strengthening the behavior that makes everyone involved win. The adage “a rising tide lifts all boats” become reals for everyone, and growth accelerates.

Creating an effective profit-sharing plan requires a thoughtful approach and discussions to identify your true needs, and how it ties with where you want to take your business. Our SMARTshare process is designed around these discussions, taking you on a journey where we uncover what will work best, and then finding a scalable structure that is relevant for you and your company long term.

To learn about profit-sharing strategies for your business, contact Eben Louw, CPA, CA, Partner, SMARTShare, at 604.870.7413 or [email protected].


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