# What is Profit Sharing?

Profit sharing distributes part of company profits to employees. SMEs use it to align staff with business success.

Source: https://faqtic.co/glossary/profit-sharing

## Why it Matters for SMEs

- Aligns incentives
- Boosts morale
- Retains staff

## Example in Practice

Profit-sharing policy uploaded in Factorial.

## Frequently Asked Questions

### Why use it?

To share success fairly.

### How to structure?

Percentage of profits.

### Risks?

Unpredictable payouts.

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Canonical HTML: https://faqtic.co/glossary/profit-sharing