Especially used as a form of incentive compensation for groups or larger distinct working units, profit sharing tends to be rewarded on a regular basis according to an established performance measure, such as monthly levels of work unit productivity or cost savings.

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Profit sharing is typically distributed on an annual or quarterly basis, rather than monthly, to share a portion of the company's profits with employees, which can motivate and reward them, but it's not usually tied to specific monthly performance metrics.

Especially Used as a Form of Incentive Compensation for Groups