- profit sharing
—profitsharing, adj.the sharing of profits, as between employer and employee, esp. in such a way that the employee receives, in addition to wages, a share in the profits of the business.[1880-85]
* * *System by which employees are paid a share of the profits of the business enterprise in which they are employed, in keeping with a plan outlined in advance.These payments, which may vary according to salary or wage, are in addition to regular earnings. Profit-sharing plans were probably first developed in France in the early 19th century as worker incentives. Today such plans are used by businesses in Western Europe, the U.S., and parts of Latin America. Profit shares may be distributed on a current or deferred basis or through some combination of the two. Under current distribution, profits are paid out to employees immediately in the form of cash or company stock. In deferred-payment plans, profit shares may be paid into a trust fund from which employees can draw annuities in later years.
* * *▪ businesssystem by which employees are paid a share of the net profits of the company that employs them, in accordance with a written formula defined in advance. Such payments, which may vary according to salary or wage, are distinct from and additional to regular earnings.Profit-sharing plans can be traced to France, where they were used in the first half of the 19th century to boost productivity and to reduce animosity between workers and owners. They were adopted later in many other countries and currently exist, in various forms, throughout much of western Europe, the United States, and parts of Latin America.Profit shares may be distributed on a current or deferred basis or by some combination of the two. Under current distribution, profits are paid to employees in a lump sum of cash or as company stock. In deferred-payment plans, profit shares may be paid into a managed fund from which employees can draw later. Some companies that offer profit sharing in the form of ownership shares occasionally invite employees to participate in the firm's management.Employers usually prefer a profit-sharing plan to wage increases or cost-of-living (cost of living) adjustments because the profit-sharing distributions are made only if a profit is earned—which means that the company is more able to afford the distribution. Profit-sharing plans also benefit employers by giving workers a direct incentive to increase their productivity. In addition, waste is reduced because a portion of each worker's income is linked to the employer's profit.
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profit sharing — ˈprofit ˌsharing also profit sharing noun [uncountable] 1. HUMAN RESOURCES when a company gives part of its profits to its employees: • He has long believed in employee profit sharing or employee ownership. • The 2005 … Financial and business terms
profit-sharing — UK US (also profit sharing) noun [U] ► HR a system by which employees receive a part of the profits of a business: »The company s costs increased due to higher employee profit sharing. »a profit sharing agreement/plan/scheme … Financial and business terms
profit sharing — n. the practice of dividing a share of the profits of a business among employees, in addition to paying their regular wages and salaries profit sharing adj … English World dictionary
profit sharing — profit shar·ing n: a plan under which employees receive a part of the profits of an enterprise Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 … Law dictionary
profit sharing — profit .sharing n [U] a system by which all the people who work for a company receive part of its profits … Dictionary of contemporary English
profit sharing — profit ,sharing noun uncount BUSINESS a system by which all the people employed by a company get a share in the profits … Usage of the words and phrases in modern English
profit-sharing — ► NOUN ▪ a system in which the people who work for a company receive a direct share of its profits … English terms dictionary
profit-sharing — profˈit sharing noun A voluntary agreement under which an employee receives a share, fixed beforehand, of the profits of a business • • • Main Entry: ↑profit * * * ˈprofit sharing [profit sharing] noun uncountabl … Useful english dictionary
profit sharing — noun a system in which employees receive a share of the net profits of the business (Freq. 1) • Hypernyms: ↑share, ↑portion, ↑part, ↑percentage * * * noun : a system or process under which employees receive a part of the profits of an industrial… … Useful english dictionary