Does profit sharing enhance productivity: evidence from the retail food industry in Canada

Mahmoud Yousef Askari and Ghaleb A. El Refae

International Journal of Business Excellence, 2020, vol. 22, issue 3, 336-351

Abstract: In this paper, we provide further support for using profit sharing to enhance productivity and profitability from the retail food industry in Canada. The overall gross profit percentage (GP%) of a retail store was used as a measure of productivity and profitability for the store. In addition, and as another measure of productivity, the study compared the performance of one of the most sensitive departments in a food retail store, and that is the GP% of the produce department. Results show that the overall actual GP% of the studied location has increased by 1.74% in the first quarter of using profit sharing, when compared with the previous quarter. Results also show an actual GP% increase of 1.12% for the profit sharing quarter when compared with the previous year that preceded the shift to profit sharing compensation system.

Keywords: profit sharing; productivity; motivation; performance; incentives; Canada. (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbexc:v:22:y:2020:i:3:p:336-351

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