One of the most common questions we get usually goes something like this: “Does everybody really get a share of the profit?” to which the answer is “Yes”. The followup question of “Why?” is always a lot harder to answer though, so we thought it was time to explain why everybody at Kolodo receives a fair share of our profit regardless of skill level or seniority.
In our industry the most vital people within a business are often those who don’t have directorships or fancy job titles, so we think the best way to acknowledge their importance and effort is to pay them well and give them the same incentives as our board of directors.
Our staff are at the heart of everything we do and we rely on them to do their best every single day to continue to provide great customer service. We don’t see our staff as a commodity who are there simply to do a job for the benefit of others, we see them as partners.
Our directors have had experience of working in digital agencies in the past and have seen how cleverly engineered bonus schemes with their conveniently unrealistic targets demotivate the people they are supposedly there to benefit.
We do not have any sales targets as they encourage digital agencies to over-promise and under-deliver, often leading to a disappointing experience for clients. We also do not have any project completion targets, as the logical outcome of such a target is a transition to a factory-like business model that churns out projects on a conveyor belt.
When starting Kolodo, we asked ourselves “how can we expect every member of staff to show the same commitment as those who manage the business if we’re not willing to treat them in the same way?“. Without our staff we would make no profit, so it is only fair that they receive a share of the profit they help generate.
We’re also big believers in transparency – the formulas we use to work out the profit share are available for all members of staff to see and we even go as far as listing how much each member of staff stands to receive as part of the scheme (including directors).
Ultimately, profit sharing works because it is simple, fair and transparent. All members of staff work towards one goal and are fully aware that to be profitable we have to complete projects on time, on budget as well as providing a fantastic customer experience along the way.