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When you consider a profit-sharing plan, there are three main ways to set it up: straight, hurdle, and goal. A profit-sharing plan is a group incentive plan that includes all employees in an organization and that focuses on overall business unit profit (or a similar bottom-line financial goal). What are the advantages and disadvantages? Advantages […]
Advantages Funded from profits, so there is low risk for the company. Can be used to supplement company retirement contributions. Can be linked to company objectives other than profit. Provide an opportunity to train employees on financial measures and the operational business factors that affect those measures. Easy to integrate with suggestion plans and other […]