Greggs, the high street baker renowned for steak bakes and sending Piers Morgan into a rage over vegetable-based flakey pastry, announced last week they were sharing their better than expected profits with their workforce.

Total sales at Greggs have risen by 13.5% over the year 2018/9, and as a result the company have decided to share 10% of their profits with their workers. In real world numbers this has led to £7 Million being put aside to be shared amongst their workers, working out £300 per employee, regardless of position within the company.

Companies which share their profits should be congratulated, for bringing employees with them when the company performs well. It is on their backs that their profits were made, so it is only right that they get to share in their successes.

Profit sharing schemes offer direct financial incentives to employees, fostering happier and more productive employees. For example Delta Airlines has been named one of the Fortune “100 Best Companies to Work For” on multiple years and has consistently been one of the most profitable airlines on the planet. In 2019 Delta earned a pre tax profit of $6.2 billion in 2019 and has decided to share an enormous $1.6 Billion with its employees this year, on average contributing to 2 months wages for each employee.

Despite this good news, Greggs still remains in the minority. There is a lack of institutionalised profit sharing in the UK and relies one the good will (or good sense) of individual businesses. In France a system for profit sharing has existed for a number of years, requiring each company with over 50 employees to institute a profit sharing scheme. In an age where profits and wages have become detached this would be a crucial step in reaffirming this link and bringing up employees with the companies successes.

A stake without a say is only half the battle, and further boosts to workplace democracy should be our goal with workers on boards and employee ownership. But as an indicator for future gains that can be made, this step taken by Greggs should be applauded.