Profit Sharing or Gain Sharing: A goal would be established monthly, quarterly, or annually, and workers would share in profits if goals are exceeded. This would be an organizational$-$wide plan$-$that is$,$ all employees of the company would participate.

Employee Stock Ownership Plan $($ESOP$)$: Similar to profit or gain sharing, employees would be paid their bonus with company stock. Employees would feel like they were part owners of the business and could help prevent hostile takeovers $($employees would be unlikely to vote for the sale of "their" company$).($If nonprofit, this option is not available.$)$

Guaranteed Cost of Living Adjustment $($COLA$)$: All employees would have their wages increased each year according to the local cost of living increase, based either on an equal percentage or equal dollars. This is a clause in many union contracts, which helps employees feel the company is doing its best to maintain an acceptable standard of living.

Merit Increases: All employees would receive an annual performance appraisal and receive a merit increase if deserved.

You may only choose one response from the options given below. If the one you choose pertains only to production workers, you may assume that another system would also be instituted for management.

Watch Video

Job Evaluation

Performance$-$Based Pay System

Team Incentive Plan

Piece Rate System

Profit Sharing or Gain Sharing

Employee Stock Ownership Plan $($ESOP$)$

Guaranteed Cost of Living Adjustment $($COLA$)$

Merit Increases

Pass on this project at this time