The time period signifies a program applied by the corporate the place staff obtain a portion of the income based mostly on the group’s monetary efficiency. This could manifest as inventory choices, money bonuses, or contributions to retirement accounts, straight proportional to the general achievements and profitability of the corporate throughout a selected interval.
This initiative fosters a way of possession and shared accountability amongst personnel. It will probably increase morale, enhance productiveness, and scale back worker turnover by aligning particular person targets with the broader organizational aims. Traditionally, such incentive plans have been utilized to reinforce employee engagement and enhance monetary outcomes for the corporate and its workforce.