HR Glossary

What is Profit Sharing?

A compensation arrangement where employers distribute a portion of the company's profits to employees, typically as a percentage of annual earnings or through a deferred retirement contribution.

Why it matters in hiring

Profit Sharing comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with P

• Probation Period (UAE)
• Probation Period
• Professional Development
• Professional Tax
• Programmatic Job Advertising
• Psychological Safety
• Psychometric Testing
• Peer-to-Peer Recognition

Part of the springhire HR glossary, 1,150+ HR, payroll and recruiting terms defined. Free, no signup.