As predictable as gingerbread cookies on the table and Mariah Carey on the playlist, Andersen Corp. made its pre-holiday employee profit sharing announcement last week, a tradition that dates back to 1914. This year, the Bayport-based window and door manufacturer is distributing $52.2 million to employees, up from $50.8 million in 2024. Each eligible employee will receive as much as $3,875, which is slightly less than last year’s $3,923, because the company’s workforce has grown by nearly 1,000 since 2024 to more than 14,000 employees.
Still, Andersen’s bonuses are well above the national average of $1,786. Bonuses have been shrinking since 2021. Last year, fewer than 40% of workers received a bonus, according to a study by payroll software firm ADP. And nearly half of the 2,000 professionals surveyed by search firm Robert Half said they received a smaller bonus than expected or no bonus at all in 2024.
“There doesn’t seem to be a straight through-line for bonuses this year,” said Justin Terch, a Duluth-based HR consultant, and president of the Minnesota State Council of Society for Human Resource Management. “Companies in high-tech and finance industries seem to be strong, while bonuses in healthcare and general industry appear to be contracting slightly.”
A few other notes from ADP’s analysis of 12 million workers at employers with 50 or more people:
- Construction and manufacturing employees are most likely to receive a bonus, followed by finance and insurance.
- Bonuses add up to about 3.5% of total gross pay for the average worker, but that percentage increases among higher income earners: Bonuses account for 10% of pay for employees making $150,000 to $250,000 and for people making more than $250,000, bonuses make up 25% of pay.
- The highest median bonus recorded by ADP went to managing directors at financial firms, at $472,000.
Andersen chairman and CEO Chris Galvin said profit sharing is “one of the many ways we celebrate the dedication of our team members and reinforces our longstanding belief that we are stronger together.” Minnesota’s other major windows manufacturer, Marvin, is expected to announce its 2025 employee profit sharing at the company’s annual meeting this afternoon, Thursday, Dec. 18.
Exec moves
Andersen’s new SVP and chief human resources officer will have to wait a year for her cut of the profit sharing. Laura Watterson started Dec. 15. Why not take the holidays off? Watterson said she highly recommends starting a new job the week before Christmas for the chance to get up to speed during the lull. Watterson also wanted to overlap with her highly regarded predecessor Karen Richard, who is retiring after 12 years with Andersen Corp.
Watterson brings more than 20 years of HR experience, most recently as CHRO at CWT in Minneapolis, which was acquired by American Express in September. At Andersen, where the culture is strong and tenure tends to be long, Watterson said she sees her role as nurturing talent.
“It’s amazing what you can learn by walking the floor, getting out in the field with installers,” Watterson said. “Human connection makes people’s jobs better.”
