Source: Fortune
Summary
Delta Air Lines has a robust profit-sharing program that distributes a slice of company earnings directly to workers as a cash bonus. This year, the company dispersed over $1 billion to its 100,000 employees, marking the ninth time in the past decade that the company distributed more than $1 billion to its workers. The program was born from a crisis in 2004 when the company filed for bankruptcy and had to make hard decisions, including pay cuts and loss of benefits. The profit-sharing program was introduced as a way to share the company’s success with employees and has since become a core part of the company’s culture. Delta’s CEO Ed Bastian believes that the program is a key to the airline’s success and has led to good results, including a high Net Promoter Score and increased revenue.
Our Reading
The numbers tell one story.
Delta’s profit-sharing program is a win-win for employees, customers, and shareholders. The program has distributed over $11 billion to employees since 2015 and has led to a high level of employee satisfaction, with nearly 9 in 10 employees saying they envision working at Delta for a long time. The program has also led to good results for customers, with a high Net Promoter Score and increased revenue. Delta’s CEO Ed Bastian believes that the program is a key to the airline’s success and has created a “virtuous circle” that leaves everyone driving up Delta’s bottom line.
Delta’s profit-sharing program is a clever way to align the interests of employees, customers, and shareholders.
Author: Evan Null
