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