A measure of profitability. A designated a percentage of annual profits is pooled and shared with employees, or to a portion of employees such as executives. The pool of money generated is then divided across covered employees using a formula for distribution. It is a profitability measure, as opposed to gainsharing which is a productivity measure.

BPIR Categories

15.4.1 Employee satisfaction/dissatisfaction
9.5.4 Develop & manage base & variable compensation
9.5.5 Manage reward & recognition programs
15.3.1 Financial performance
9.6.2 Manage employee satisfaction

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