What is the most common basis for allocating the profit-sharing bonus across employees in Canadian firms?

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The most common basis for allocating the profit-sharing bonus across employees in Canadian firms is typically a combination of salary level and individual performance. This approach takes into account both the employee's level of contribution to the company and their compensation level, ensuring that everyone is fairly rewarded for their work. Seniority-based bonuses can create resentment among younger or more productive employees, and performance-based bonuses alone may fail to reward those who have been with the company for a long time and have accumulated valuable experience. Therefore, a balance of both factors is often seen as the most effective approach.

What Is the Most Common Basis for Allocating the Profit-Sharing