PROFIT SHARING, GAIN SHARING, WAGE INCENTIVES

Profit Sharing, Gain Sharing, Wage Incentives

Profit Sharing, Gain Sharing, Wage Incentives

Introduction

Every company offers different incentives other than basic pay to its employees in order to retain them. These may include profit sharing, gain sharing, skill-based pay, or wage incentives. Offering an incentive is significant as it helps a company to refrain its employees from moving to another company.

Discussion

Profit-Sharing

Profit sharing is a performance encouragement plan that distributes a fixed percentage of an organization's pretax profits to competent employees. Profit-sharing plans work best when a company is steady and profitable, when employees perceive their efforts have ...