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In this video, Joe Collins from Avalon Accounting discusses profit sharing and its potential benefits and drawbacks for businesses. Profit sharing can enhance employee engagement by motivating them to care about the company's success, as their financial rewards are linked to the company's profits. This can lead to employees taking proactive actions to boost profitability. However, the video also highlights potential pitfalls of profit sharing and advises business owners to consider both the advantages and disadvantages before implementing a program. It emphasizes the importance of doing it correctly to maximize its positive impact on the business.