Profit sharing is paid at the end of every month (as of the previous month's results) to all full and part time employees who have been with the company for 3 months or longer.
Profit sharing is a bonus. An unexpected surprise each month. No one should count on it. There are a lot of factors at play that could affect how we are doing at any given point in time; competition, the economy, what we choose to invest in, etc. etc..
To calculate how much profit sharing is available we take the average profit per month for the last 6 months and we multiply that number by 25%. This is the amount to be paid out to employees at month end and it is allocated proportionally to everyone. For example; let’s say we have 25 employees who are full-time and 2 employees who work half time (50% of a full time person's hours), so that when we add the two part-time people into the pool we have 26 full time equivalent employees in total. In this scenario each full-time person receives 1/26th of the pool and the 2 part-time employees earn .5/26 or half of the amount paid to full-time employees.
The amount of profit sharing you receive is a great way to know how the company is doing, but that only communicates the end result. It doesn’t give everyone the information they need to independently make financial decisions to improve that amount. To this end the financials of the company, and the profit sharing, are reviewed and discussed with everyone at the close of every month. We want everyone to know how we make our profit, and where we have problems and opportunities, so that they can make informed decisions every day.