UX&I introduces its first human-centered employee participation program

How does fair pay work?

The need for an employee profit-sharing plan arose within the Managing Directors’ team. Tobias Schlei, co-founder of UX&I: “I’d always been bothered by questions like ‘What about inflation adjustments?’ or ‘What do others pay…?’ I felt like a factory owner trying to keep labor costs low. That doesn’t fit the company’s image at all. It’s actually the other way around: We want to pay as much as possible, and it has to be fair.” So initiatives were launched in two directions: First, work began on a fair compensation system. The main focus here was on what is fair compared to peers. The second key component was employee profit-sharing. Here, the desire for fairness was quickly translated into a model: Half of the profit goes to the team: 30% in the form of employee profit sharing, 20% in the form of a budget that the teams manage independently. The share for individual employees is allocated based on their length of service. Even if someone has brought value to the company, they receive a slightly larger share of the profit. 

Silent partners instead of a bonus system

A major difference from conventional participation models is that this is not a purely monetary program; rather, employees become silent partners. As a result, they are not only financially invested but are also involved in the company as equals. This also comes with rights, such as full access to the cost structure, annual financial statements, etc. UX&I expressly does not want to include employee equity. These aspects were so important to the company that the silent partner model was defended even in the face of resistance. Attempts to consult with tax advisors or law firms came to nothing because these entities prioritized financial aspects and the most practical approaches possible. There were no role models, neither among startups nor among traditional corporations. It was only with the help of the Federal Association for Employee Participation that the model could be implemented according to UX&I’s individual needs. “This sets the company’s mindset in stone,” says Tobias Schlei. UX&I is organized according to sociocratic principles, with a human-centered approach, autonomy, self-efficacy, and everyone’s responsibility for the company’s well-being. The ownership model reflects this, and helps UX&I achieve its major employer goal: for all UXIs to stay with the company until retirement.

The response

When the employee stock ownership plan was announced, the UX&I management team was met with astonished faces. The core team in particular, which does not work in day-to-day operations, was surprised to learn that they, too, would be included. Tobias Schlei, the initiator of the employee stock ownership plan, is pleased: “That was pretty high on my list of things I want to achieve in my life.”

More comments from the team:

“Being a silent partner at UX&I brings a whole new dimension to my relationship with the organization. My first thought was: what a vote of confidence in me and my work. I am extremely grateful and look forward to helping shape UX&I for many, many years to come. And it reinforces the first impression I had of the people here about five years ago: one for all, all for one.” (Kay Spiegel, Senior UX consultant at UX&I)

“As a ‘Kernie,’ that is, as a member of our internal core team, I loved feeling like I belonged to the whole group. Otherwise, there’s often a distinction between ‘internal’ and ‘external.’ The project teams obviously add value in terms of numbers, but the value of my work is harder to quantify. With the employee stock ownership plan, however, I’m still involved: as a person, as Marie. And: I’m already familiar with the numbers and the annual financial statements, that’s nothing new to me as the finance representative. But now I see it through a whole new lens as a silent partner. You’re quietly investing in your future. For me, this model has also further strengthened my trust in the Managing Director and in the company because it means transparency.” (Marie Tetzlaff, Finance and HR at UX&I)

What’s next? 

The model was implemented in July 2023. Work is continuing on the finer details; for example, employees are to be given insight into their current equity, and consideration is being given to whether they should also participate in shareholder meetings.