Businesses are learning that it takes more than fun perks to keep employees happy. In the past, companies might have offered free snacks, casual dress codes, or even ping pong tables to make work more enjoyable. But for the new generation entering the workforce — Generation Z — those perks just aren’t enough. Born between the late 1990s and early 2010s, Gen Z has grown up watching economic instability, skyrocketing student loan debt, and widening income inequality. As a result, many of them are less interested in flashy office features and more focused on fairness, stability, and opportunities for financial growth. One way that companies can meet these expectations is through revenue sharing.

Revenue sharing means that employees receive a portion of the company’s earnings based on its overall performance. Instead of just collecting a regular paycheck, employees benefit directly when the company does well. This approach can help businesses keep their workers motivated and loyal, which is especially important today when many companies are struggling with high turnover rates. In fact, offering equity or profit-sharing opportunities has become one of the best tools for retaining top talent — especially younger workers who want to feel like they are truly part of something meaningful.

Why Gen Z Wants More Than Just Perks

Many members of Gen Z grew up during the Great Recession or were children when it happened. They saw their parents or relatives lose jobs, homes, and retirement savings. Then, they came of age during the COVID-19 pandemic, which created even more financial insecurity and uncertainty about the future. Because of these experiences, Gen Z tends to be cautious and practical when it comes to money and careers.

This generation also cares deeply about values like fairness and equality. They’re more likely to question traditional business structures and ask tough questions like: Why do CEOs make so much more than the average worker? Why don’t all employees benefit when a company is thriving? Why do some workers struggle while others at the top grow richer and richer?

As a result, Gen Z is not as impressed by surface-level perks. A ping pong table in the office might be fun for a few minutes, but it doesn’t help someone pay rent, invest in their future, or feel secure in their job. Gen Z workers want real, tangible rewards — and equity in the company they help build is one of the most powerful ones.

What Is Revenue Sharing?

Revenue sharing is a system where companies divide a portion of their earnings with employees. This can take many forms, such as:

Profit-sharing plans: Employees get a bonus based on how much profit the company makes.

Stock options or equity: Workers receive shares of company stock, which may grow in value over time.

Team-based performance bonuses: Teams are rewarded when they meet certain business goals that drive revenue.

The idea behind all of these options is simple: when the company does well, everyone benefits. This approach helps employees feel like they are part of the company’s success — not just workers collecting a paycheck, but contributors to a larger mission.

Why Revenue Sharing Helps Keep Employees

Turnover — or employees quitting and needing to be replaced — is expensive. It costs money to recruit, hire, and train new workers. It also lowers morale and productivity when people are constantly leaving. That’s why employee retention is such an important goal for businesses.

Revenue sharing helps solve this problem by giving workers a reason to stay. When employees know that their hard work can lead to real financial rewards, they’re more likely to stick around. It also creates a sense of ownership. If you have a stake in something, you’re more likely to care about it and want it to succeed.

For Gen Z, this ownership mindset is especially powerful. They don’t just want to show up, do a job, and go home. Many want to feel like their work matters and that they have a voice in how things are run. Sharing in the profits or equity of a company is one way to show them that their voice does matter.

The Difference Between Perks and Equity

Companies sometimes think they’re keeping employees happy by offering perks. These might include:

Free lunches

Nap rooms

Game nights

Gym memberships

Fun events or retreats

While these perks can make the workplace more enjoyable, they don’t do much to support long-term financial security. Equity and revenue sharing, on the other hand, show employees that the company is willing to invest in them.

Equity means owning a part of the company. Even a small share can become valuable over time. And, more importantly, it means that employees are not just laborers — they’re partners. That kind of investment goes a long way toward building trust and loyalty.

Companies Already Using Revenue Sharing

Some of the most successful companies in the world have used revenue sharing or equity to keep their teams strong. For example:

Google offers stock options to employees as part of their compensation. Many early Google employees became millionaires when the company went public.

Costco has long offered generous profit-sharing plans to employees, which helps explain its low turnover compared to other retailers.

Chobani, a yogurt company, gave all of its employees shares in the business. When the company grows, so do the earnings of every worker, from executives to factory workers.

These companies understand that when employees are financially invested in the outcome, they work harder, stay longer, and feel more committed.

Revenue Sharing Builds a Better Company Culture

One of the most important benefits of revenue sharing is the positive effect it has on company culture. It encourages teamwork, because everyone is working toward the same financial goal. It also builds transparency, since employees often want to understand how profits are earned and shared. This openness leads to more trust between workers and leadership.

When employees feel like they are part of the company’s success, they are also more likely to go above and beyond in their roles. Instead of just doing the minimum required, they look for ways to improve processes, help teammates, and think creatively. This kind of culture leads to better products, better customer service, and a stronger business overall.

Challenges and Solutions

Of course, revenue sharing isn’t a magic fix for all workplace problems. Some companies worry about the complexity of creating profit-sharing plans or offering equity. Others worry that it could reduce the amount of money available to reinvest in growth or pay other expenses.

But these challenges can be managed with clear communication and smart planning. For example:

Companies can offer revenue sharing based on performance metrics that are easy to measure.

They can start with small bonuses and grow the program as the company becomes more profitable.

They can educate employees about how equity works and how it benefits them over time.

Transparency is key. If workers understand the system, they are more likely to support it and stay engaged.

The Future of Work: Shared Success

As more Gen Z workers enter the workforce, the demand for fairness and shared success will only grow. These workers are smart, connected, and outspoken. They know what they want — and it’s not ping pong.

They want to know that their time and energy are going toward something meaningful. They want to work for companies that treat them with respect and offer a path to financial stability. Revenue sharing is a way to meet these expectations while also building a stronger, more loyal team.

Businesses that embrace this model are likely to have an easier time attracting and keeping the best talent. They will also create workplaces where people feel inspired to contribute their best work. And in the end, everyone benefits — the employees, the leadership, and the customers.

Big Picture

Employee retention is one of the biggest challenges facing companies today. But instead of relying on surface-level perks, businesses should look at what workers — especially Gen Z — truly value.

Gen Z wants fairness. They want opportunities to grow financially. They want to be seen as partners, not just workers. And revenue sharing gives them exactly that.

By allowing employees to share in the success they help create, companies can build a culture of loyalty, ownership, and long-term growth. In a world where job-hopping is common and burnout is rising, this might be the smartest investment a business can make.

So the next time someone suggests adding another ping pong table to boost morale, consider a better idea: give your employees a real stake in the game. They don’t want gimmicks — they want equity. And that’s how you build a team that stays.

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Hi, I’m Heather.

I help people buy, scale, and sell businesses. Think of me as your “anti-corporate” guide to ownership.

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