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what is profit sharing if you give your employees a direct share of your companys profits you are involved in profit sharing profit sharing is an incentive plan that employers pay their workers in addition to their salaries some companies pay their employees cash while others may give them stocks proponents argue that without its workers the company would not have made a profit so it is only fair to share some of it if you want your company to continue thriving your workers need to feel that they are benefiting from its success if all they see are rich directors getting even richer while their incomes remain unchanged they are unlikely to work that hard there is also a risk of losing employees to competitors that do have profit sharing schemes there are many different types of profit sharing schemes some employers share a proportion of profits with all their workers others profits share with just some employees such as directors and managers sales personnel receive either a profit sha