It is a form of incentive in which each participating WORKER receives a periodic bonus in addition to a regular PAY only when the company earns a profit. A minimum profit is usually set aside for a return on invested capital, and beyond this AMOUNT, a percentage of profits goes into a pool to be shared by the employees. To protect the workers against adverse developments outside their control, some plans give the workers a bonus whenever the actual payroll dollars are less than the NORMAL amount expected for a given volume of production.

It is a form of incentive in which each participating worker receives a periodic bonus in addition to a regular pay only when the company earns a profit. A minimum profit is usually set aside for a return on invested capital, and beyond this amount, a percentage of profits goes into a pool to be shared by the employees. To protect the workers against adverse developments outside their control, some plans give the workers a bonus whenever the actual payroll dollars are less than the normal amount expected for a given volume of production.