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    This addresses offering profit-sharing to new employees.

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    What is one reason that companies often allow new employees to immediately participate in profit- sharing plans?

    © BrainMass Inc. brainmass.com October 10, 2019, 4:39 am ad1c9bdddf
    https://brainmass.com/business/rights-offering/this-addresses-offering-profit-sharing-to-new-employees-470924

    Solution Preview

    The main reason why companies do this is because it encourages greater loyalty to the company, right from the start. When a company offers an immediate acceptance into their profit sharing plan, the employee is more likely to realize that the company is sincere in their efforts to retain the employee. With companies that offer profit-sharing, they usually also offer other benefits, like on-going training, and other incentives ...

    Solution Summary

    The solution provides a detailed explanation of reasons why companies would allow new employees to immediately participate in profit- sharing plans.

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