The Bottom Line of Bonuses

The success of some small companies came so easily because the owners assume that it is simply part of their natural growth path. However, they have also learned that employees who are very motivated to produce output ought to deserve a lot of credit.

Lessons from Logical Choice Technologies

For the past ten years, the company Logical Choice Technologies (specializing in education technology) has ended up growing beyond usual recognition. When it was first established, the owner was busy working in his basement by peddling Apple and Compaq desktop computers to many schools. Around the year 2007, his company ended up profiting very handsomely based on the sales of their interactive whiteboards – which are large screens with touch displays which connects the computers and the projectors together.


The entire staff got bloated to one hundred and fifty employees working on a full-time basis all across the country. During this time, it was observed that the team spirit which they had all enjoyed earlier when the company was smaller had begun to go down. This was pretty much true for those employees who ended up working outside the headquarters – the employees who worked really hard yet did not feel the sense of belongingness in the company.

Smart Solutions

In order to uplift the energy yet again, the owner decided to introduce a profit-sharing program back in 2005. He established a set gross profit goal and mentioned to everyone that if they were able to reach it before the end of the year they would be able to take for themselves ten percent of the entire profit and split it among one another in an equal manner. In effect, the owner would end up getting the same size bonus as that of the receptionist. For that target to be reached, it was necessary to engage in teamwork that can work to maximize their sales while at the same time minimizing expenses. There was also one key motivational tactic, which was sending out monthly email updates to the entire staff.

This as to update them on the progress they make toward their profit goal. The owner made sure that each person knew what was happening and what needed to be done in order to maximize the profits. Because of that, they were able to hit their target and almost all of the employees were able to receive checks worth seven hundred and seventy dollars. However, when it came to planning for the following year the owner was not sure if profit-sharing would cut it. To cut the long story short, it was a costly mistake so in 2007 they decided to reinstate the profit sharing program. Because of this, the owner realized that everyone would find a way to contribute to the fund so that in the end, teamwork really worked well.