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[Music] to be effective an organizational incentive program should include everyone from non-exempt employees to managers and executives to common organizational variable pay systems are a profit sharing and employee stock plans lets take a look at profit sharing as the name implies profit sharing is a system to distribute a portion of organizational profits to employees the primary objectives of profit sharing plans can include the following improve organizational results attract or retain employees improved product or service quality enhance employee morale and focus employees on organizational goals and objectives typically the percentage of profits distributed to employees is established by the end of the year before distribution although both timing and payment levels might be determined later employees must trust that management will accurately disclose profit and other financial information the definition and level of profit can depend on the accounting system used and on good
