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Delta Air Lines Rewards Employees With Two Months Extra Pay For Good Performance Year
Delta Air Lines had a very fruitful 2019 and instead of being selfish, they rewarded their employees by giving them more coins.
The major airlines announced it would spend $1.6 billion in paying their employees in profit-sharing bonuses. In other words, every employee that qualifies will receive a bonus of 16.6% of their annual salary in their check next month. The bonus adds up to two months’ pay.
2020 makes it the sixth year in a row that Delta has paid more than $1 billion to its employees. According to a Delta spokesperson, the plan began in 2012 after Delta’s merger with Northwest.
Delta CEO, Ed Bastian, shared on LinkedIn: “Delta would be nothing without our 90,000 people. They deserve all the credit.”
In addition to the bonus, Delta employees receive a 401(k) match and other bonus programs.
All employees with the exception of directors, general managers, and Delta officers will be receiving bonus checks.
Joseph Blasi, director of the Institute for the Study of Employee Ownership and Profit Sharing at Rutgers University tells WSVN News that Delta’s employee payout is nothing but good business.
“Research shows that cash profit-sharing plans, combined with a supportive corporate culture that encourages employees to offer suggestions and participate in solving company problems, can reduce turnover and improve corporate performance and personal motivation,” says Blasi.
Delta isn’t the only company to offer such incentives, it’s mostly found in the airline and auto industries, according to Blasi.
For example, Automotive News reports that companies like GM, Ford, and Fiat Chrysler have given their employees a combined amount of nearly $5 billion since 2015.
Delta’s profit-sharing plan includes both full-time and part-time employees.