Here's what it means for competitors like Delta, United, and American--plus the lesson for your business. //
Southwest Airlines announced Thursday that it's sharing a total of $667 million with Southwest employees as part of its profit sharing plan for 2019.
That works out to a 12.2 percent bonus and "more than six weeks' pay for every eligible employee," according to the airline's statement. //
Southwest made its announcement just weeks after one its big competitors, Delta Air Lines, which has about 20,000 more employees than Southwest, announced its own profit-sharing numbers: $1.6 billion.
The two other big U.S. carriers, United and American, announced profit-sharing numbers at $419 million and $213 million, respectively.
Delta, Southwest, United, and American
Now, it's hard not to notice the order in which the size of the airlines' profit-sharing programs are ranked: First Delta's, then Southwest's, then United's, and then American's.
That also happens to be the order in which theses airlines are listed in the recent Wall Street Journal ranking of the best and worst U.S. airlines.
Delta came in first, Southwest tied with its smaller competitor Alaska at second, United was eighth, and American was ninth. //
Correlation? Causation? As scientists might say, it warrants further study.
And speaking as an observer, I'd say it suggests it's better to find ways to compensate employees that give them a direct stake in your company's overall success.