profit sharing

Thân thiện

The company's profit sharing plan rewards all employees each quarter.

Definition

1. Noun:
   • A system or plan in which a company gives a portion of its net profits to its employees, typically as a bonus or supplement to their regular wages or salaries. The purpose is to incentivize employees and allow them to benefit directly from the company's financial success.

Usage

• As a subject: "Profit sharing was introduced to boost employee morale."
• As an object: "The union negotiated a new profit-sharing plan."
• With prepositions: "Employees participate in the company's profit-sharing scheme." / "The bonus was paid through profit sharing."

Examples

• The new CEO believes that profit sharing aligns the interests of workers with those of the company's shareholders.
• Many tech companies offer generous profit-sharing arrangements to attract top talent.
• Under their profit-sharing agreement, 10% of the annual net profit is distributed among all full-time staff.

Advanced Usage

• "Deferred profit-sharing plan (DPSP)": A type of profit-sharing plan where the company's contributions are invested on behalf of the employee, and the funds are paid out at a later date, often upon retirement.
  • He invested his bonus from the deferred profit-sharing plan into his retirement fund.

Variants and Related Words

• Profit-sharing (adjective): Used to describe a plan, system, or agreement.
  • They signed a new profit-sharing agreement.
• Gain-sharing: A related system where employees receive bonuses for improvements in productivity, efficiency, or other specific metrics, not solely based on overall company profit.

Synonyms

• Bonus system
• Employee share scheme (in some contexts, though this often involves stock/equity)

Related Phrases

• Performance-related pay: A broader term for compensation tied to individual, team, or company performance, which can include profit sharing.
• Employee incentive plan: A general term for programs designed to motivate employees, which often incorporate profit sharing.

Học thuật

Noun

1. a system in which employees receive a share of the net profits of the business