“The only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t settle.” – Steve Jobs
In the staffing industry, attracting and retaining top talent remains essential to long-term success. One impactful way to build a rewarding and growth-focused work environment is by introducing a tiered profit sharing plan. This approach fosters shared commitment, increases engagement, and drives performance.
As we move into 2025, it’s not too late to give your staffing agency a fresh start. Implementing a tiered profit-sharing plan can deliver
powerful results—enhancing branch performance and driving overall company success.
The Challenge
Reliance Staffing initially offered its permanent staff a standard salary and benefits package. However, the company sought a better alternative to annual cost-of-living increases. Leadership wanted to directly tie employee income to performance outcomes.
More specifically, management aimed to incentivize branch-level employees to contribute to the company’s profitability, while simultaneously increasing their personal monthly income.
The Solution
To meet this challenge, Reliance Staffing implemented a tiered profit sharing plan that rewards all branch team members based on the company’s financial performance.
This plan was carefully crafted to:
- Drive profitability
- Strengthen collaboration
- Elevate employee morale
Crucially, the plan includes a minimum profit threshold, ensuring bonuses only activate when the company reaches specific financial targets. Once the threshold is met, bonuses are calculated using a tiered structure—the higher the net profit, the higher the bonus percentage.
Plan Details
Eligibility:
All branch team members—including Branch Managers, Recruiters, On-Site Managers, Account Managers, and Administrative Staff—are eligible to participate.
Profitability Threshold:
Branches must achieve a minimum profit of 3% of revenue to qualify for bonus payouts.
Tiered Bonus Structure:
- $0 – $5,000 profit: 1% of net profit
- $5,001 – $10,000 profit: 1.5% of net profit
- $10,001 – $15,000 profit: 2% of net profit
- $15,001 – $20,000 profit: 2.5% of net profit
- Over $20,000 profit: 3% of net profit
The Results
The results of the tiered profit-sharing plan were both measurable and impressive:
1. Increased Branch Profitability
Branches were motivated to consistently exceed the 3% profit threshold. With bonuses awarded monthly, employees stayed focused on performance and celebrated wins twelve times a year.
2. Strengthened Teamwork
Because the plan included everyone, it fostered a sense of shared ownership. Teams worked collaboratively to achieve financial goals, creating a supportive and inclusive culture.
3. Enhanced Employee Morale
Monthly bonuses made employees feel seen, valued, and appreciated. This continuous recognition boosted morale and helped reduce turnover.
4. Greater Financial Awareness
Staff began to understand and care about profitability. They didn’t just focus on sales—they tracked expenses, workers’ compensation, and unemployment costs with newfound diligence and accountability.
The Takeaway
This tiered profit sharing strategy proved to be a game-changer for Reliance Staffing. By aligning individual incentives with company goals, Reliance created a culture of ownership, transparency, and motivation.
“Almost a third of American workers whose pay is not tied to performance believe they’d be more productive if they had a greater interest in their company’s success.” – Steven Miller, SHRM
“When implemented effectively, performance-based compensation drives better outcomes at both the individual and business levels.” – Michelle Gouldsberry, Betterworks
How COATS Staffing Software Helped
Implementing a profit-sharing plan is one thing—administering it efficiently is another. COATS Staffing Software played a vital role in supporting Reliance’s success:
✅ Comprehensive Data Management
COATS centralized employee data, sales, job orders, payroll, and accounting. The software made it easy to pull the precise financial and performance metrics required to calculate bonuses.
📊 Reporting and Analytics
With flexible reporting tools, COATS generated custom reports on branch and individual performance. This made it simple to track progress, evaluate success, and determine bonus amounts.
🔄 Seamless Integration
COATS integrates with a variety of financial and performance systems, streamlining the profit-sharing administration process.
Ready to Drive Performance in 2025?
If you’re looking to improve your branch outcomes and reward your team more effectively, a profit-sharing plan backed by COATS Staffing Software could be the solution you need.
👉 Request a demo today and see how COATS can help you implement powerful incentive programs that fuel performance and growth.