MassPay Gives 15-18% Salary Bumps From AI Profit-Sharing
MassPay is sharing AI-driven productivity gains directly with its employees. The company's profit-sharing bonuses for AI use resulted in 15-18% salary bumps, offering a forward-looking model for total rewards strategy in the age of automation.
The profit-sharing model at MassPay was a direct response to employee hesitation and fear of job replacement from AI. Cofounder and CEO Ran Grushkowsky implemented the program in mid-2025 to align the team around two goals: increasing revenue and, more importantly, cutting costs through AI-driven efficiency. The initiative proved successful, eliminating the need to hire five planned positions in 2025. The bonus pool is funded by any profit generated beyond what's needed for operations and growth. An employee's share is calculated based on their salary as a proportion of the total salaries of all eligible staff. While the recent payout hit 18% of annual salary, the company projects this could increase to nearly 50% this year. Incentivizing AI adoption is becoming a common corporate strategy. Fintech firm Brex has awarded over 225 spot bonuses for AI projects, with payouts ranging from $150 to several thousand dollars for high-impact automations. Similarly, law firm Shoosmiths established a $1.3 million bonus fund tied to the collective use of Microsoft Copilot, aiming for 1 million uses within the fiscal year. This trend is part of a broader shift in total rewards strategy, as AI allows for more dynamic and personalized compensation. AI can now be used to manage real-time, event-driven compensation, like automatically calculating variable pay or spot bonuses as project milestones are met, rather than waiting for annual reviews. A Mercer study found that AI and automation could potentially handle over half of a rewards team's transactional workload. The demand for AI-savvy employees is creating significant wage premiums. On average, roles requiring AI skills offer a 56% higher salary. In some non-tech industries, employees with relevant AI expertise can earn 15-20% more than their peers in similar roles. This has intensified a talent war, with over half of all AI-related roles now existing outside of the traditional tech sector. However, the return on investment for enterprise AI is not always clear-cut. While one study found that employees using AI save an average of 7.5 hours per week, another MIT study revealed that 95% of organizations see zero return from their generative AI investments. In 2025, there was a notable increase in companies rehiring employees previously laid off for AI-driven roles, suggesting that the promised productivity gains have not universally materialized.
