Explore BrainMass

Explore BrainMass

    Profit-Sharing Versus COLA

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Explain the difference between profit-sharing plans and COLAs. Do you believe profit-sharing plans or COLAs are more beneficial to employees? Defend your answer.

    © BrainMass Inc. brainmass.com June 3, 2020, 10:40 pm ad1c9bdddf
    https://brainmass.com/business/business-management/profit-sharing-versus-cola-243016

    Solution Preview

    Collective Bargaining

    Explain the difference between profit-sharing plans and COLAs. Do you believe profit-sharing plans or COLAs are more beneficial to employees? Defend your answer.

    Profit-sharing plans distribute a fixed percentage of total organizational profit to employees in the form of cash-deferred bonus amounts. They are defined contribution plans established and maintained by employers in which contribution to the plan may vary each year. These plans must provide a definite predetermined formula for allocating the contributions made to the plan among the participants.

    Cost-of-living-adjustment (COLA) is the wage increase or decrease pegged to the ...

    Solution Summary

    The solution explains the differences between profit-sharing plans and COLAs and which among the two is more beneficial to the employees. References included.

    $2.19

    ADVERTISEMENT