Tuesday, 29 October 2019

PROFIT-SHARING PLANS

A profit-sharing plan gives employees a share in their company’s profits based on its quarterly or annual earnings.

It is up to the company to decide how much of its profits it wishes to share.

Contributions to a profit-sharing plan are made by the company only; employees cannot make them, too.

It places a sense of togetherness among the employees to work together towards a common goal of making the organization successful.
It enables an employee to focus more on the organizational goals than their personal goals

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