Newspaper article The Christian Science Monitor

Profit Sharing Pays Off

Newspaper article The Christian Science Monitor

Profit Sharing Pays Off

Article excerpt

Profit sharing boosts corporate productivity and profitability.

That's the finding of a study by Douglas Kruse, an economist with the Institute of Management and Labor Relations at Rutgers University, New Brunswick, N.J. It uses new data from a survey of 500 United States public companies, half with profit-sharing plans and half without.

Introduction of a profit-sharing plan is associated with an average increase in productivity of 4 to 5 percent, according to Professor Kruse. Though unique in some aspects, this study, reported in a National Bureau of Economic Research paper, agrees in its basic finding with a variety of earlier studies.

In the US today, an estimated one-sixth to one-fourth of employees participate in some form of workplace profit sharing. Outside the US, profit sharing has been attracting strong interest.

The productivity impact of profit sharing is found to be larger with small companies and for those paying cash rather than deferred compensation, the study finds. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.