This study establishes an endogenous growth model characterized by a revenue sharing scheme and two variable factor utilizations, namely, labor productivity and the capital utilization rate. The results indicate that if revenue sharing acts as an efficiency wage, performance pay seeking can be a driving force behind labor productivity and in turn economic growth without any factor externalities. However, a more intensive sharing scheme may not necessarily increase employment, capital utilization, or economic growth. The current analysis also shows that capital utilization and economic growth always exhibit a positive relationship with each other, whereas employment may be either pro-cyclical or countercyclical in relation to capital utilization and balanced growth rates, which crucially depend on different shocks.