Effectiveness of the profit sharing scheme within FFS Refiners (Pty) Ltd.
The profit sharing scheme at FFS Refiners (Pty) Ltd has remained unchanged for a long period and acts as a motivational tool for certain employees in the organisation. The aim of the study is to highlight the effectiveness of the current profit sharing scheme at FFS Refiners (Pty) Ltd and how it can be optimised so that it can become more efficient and effective. A quantitative study was performed for this research. The data collection method that was used was a questionnaire which was administered to the population via Question Pro. The total population size for this study was 52 employees that are currently on the profit sharing scheme. A simple random sampling technique was utilised. Due to the population size being 52 and a confidence interval of 95% was required, a sample size of 48 sufficed for the study for which a total of 48 responses were received. The 95% confidence interval had a margin of error of 3.5% indicating that the sample response is indicative of the population. The initial questionnaire was pretested and validated using key employees that are currently on the scheme. The response rate for the administered questionnaire was 48 off 52, i.e. 92%. The findings of the study indicate that profit sharing motivates employees. It further identifies that employees prefer having a reduced salary and be exposed to the risk and variability of the profit sharing scheme. The results also indicate that the profit sharing scheme will be more effective if managed monthly and finally the profit sharing scheme will be more efficient and effective if a performance management tool, i.e. balanced scorecard, is linked to the profit sharing scheme. The main recommendations of the study is to offer a profit sharing scheme to lower level employees, review the profit sharing scheme on a monthly basis and to incorporate a performance management tool to the existing profit sharing scheme.