noun a system in which employees receive a share of the profits of a business
In finance, profit sharing can refer to an investment strategy where profits are shared between investors and fund managers based on a predetermined agreement.
In the business world, profit sharing refers to a system where employees receive a share of the company's profits, typically as part of their compensation package.
Within HR departments, profit sharing is often used as a tool to incentivize employees and align their interests with that of the company.
Profit sharing arrangements may be subject to specific legal regulations and requirements, making it a key consideration in employment law.
In the publishing industry, writers may receive profit sharing from book sales or royalties based on the success of their work.
Some psychology practices offer profit sharing to their employees based on the overall financial performance of the practice.
Tech companies often provide profit sharing to software developers as a way to incentivize them to contribute to the success of the company.
Sales representatives may receive profit sharing as part of their compensation package, based on the sales revenue they generate for the company.