Common Contracts
1 similar Profit Sharing Agreement contracts
Profit sharing agreement with employeeProfit Sharing Agreement • March 16th, 2021
A company’s human resources division can use various methods to motivate their employees. Two such financial motivations are profit sharing and gainsharing. Both methods allow employees to receive monetary benefits from their high-quality work and results. However, while the two methods have similarities, they have significant functional differences and can motivate different people differently. Gainsharing and profit sharing programs are similar in that both take a portion of overall profits and give it to the employees. Profit sharing, however, is broader in this regard by taking the percentage of a company’s overall profit and distributing it evenly among all employees. Gainsharing, on the other hand, takes a number of other operational factors into consideration, such as quality, service and cost reduction by individual employees. As a result, those employees receive a share of the financial benefits resulting from those actions. Additionally, profit sharing typically covers all of
