Staffers at Sports Direct are soon to be rolling in shares following a  40% increase in pre-tax profits during FY2012 to 2013. Founded by Newcastle United owner Mike Ashley, the chain has had a remarkable turnaround in the past few years, culminating in a surge in its share price of more than 600%. Operating 396 stores and several leading sports brands such as Slazenger, Lonsdale and Everlast – plus outdoor-wear and camping label Karrimor – the company’s record-breaking profits in the past year totalled £207.2 million and revenues increased by 11.2%.

Thanks to a four-year, share-incentive bonus scheme created in 2011, in addition to a similar programme launched in 2009, more than 2,000 employees will receive significant financial rewards next month. Eligible staffers ranging from shop-floor workers to senior management, will receive a total 21m shares – currently worth up to £135m. So, for example, an employee earning a salary of £20,000 in 2009 will earn a payout of some 12,000 shares – worth more than £68,000.

The chain’s incentive follows a similar move by Next CEO Lord Wolfson, who split his own £2.4m bonus among all 19,400 of his staff in April to demonstrate their value to the firm.

Sports Direct chief executive Dave Forsey explained that the shares scheme has helped to halve the number of workers leaving, and has contributed to a stronger relationship with staff. “It’s been a game changer for us,” he said. “Staff genuinely care more about everything that is happening in the business. Retail is about detail and staff have been able to help us make small improvements that really make a difference.”

Employee engagement is a huge motivator behind these types of schemes, as it is increasingly recognised among managers that better rewards for employees boost their productivity.

As Professional Manager reported in November, a recent Gallup study showed that up to 75% of employees who believe their employer cares about their wellbeing would describe themselves as very loyal to that company. Furthermore, world-class organisations have more than five times the number of “engaged” workers for every one “actively disengaged” member of staff than the low-ranking firms.

No doubt Sports Direct staffers will use the extra cash to pay bills, plan holidays or even put down deposit for new homes – all of which would make their spouses particularly happy, chiming with the conclusions of recent research from the British Psychological Society indicating that the mood of life partners is crucial to determining employees’ happiness at work. The research found that staffers were significantly more likely to be looking for a new job when their partner’s perceptions of their current role were negative – no matter what the employee’s own perceptions were.