The type of organizational-level reward in which employees receive a percentage of the organization's previous year's profits is called a:_______

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22-07-2022
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The type of organizational-level reward in which employees receive a percentage of the organization's previous year's profits is called a:_______

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choprayogita110 choprayogita110 · Answer 1 · 2022-07-28T12:55:15+02:00

The type of organizational-level reward in which employees receive a percentage of the organization's previous year's profits is called a profit sharing.

Profit sharing is a system where employees are paid a portion of the net earnings of the firm they work for, according to a predetermined written formula. These payments, which may differ based on salary or compensation, are separate from and in addition to ordinary income.

Profit sharing refers to various incentive programs that companies have implemented that give employees direct or indirect compensation based on the company's profitability in addition to their base pay and bonuses. These schemes often involve the distribution of shares to employees in publicly traded corporations.

Learn more about profit sharing here

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