Profit-sharing is one way of linking compensation strategy to business strategy.
Southwest’s profit sharing program is designed to encourage employees to feel like they own the
place. Southwest encourages creativity and innovations from employees that will save time and
money. Employees are allowed to share in those profits, which encourages workers to apply
themselves. Such ideas include the ticketless travel idea and a determination by employees to
speed the turnaround times. Southwest calculated how much money would be wasted if a plane
spent more time at an airport and less time on a flight segment. Profit sharing provides
employees a motivation to increase speed of service, and therefore profitability.