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Profit Sharing in the United States (Classic Reprint)

Profit Sharing in the United States (Classic Reprint)

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Excerpt from Profit Sharing in the United States

The recognition of the desirability of a distribution of the profits of an enterprise so as to give to all the employees concerned with their creation a fair share is by no means of recent origin. Various reformers, some students of industrial problems, and often employers, have from time to time addressed themselves to a consideration of this problem with varying degrees of enthusiasm and zeal. Profit sharing, at times, has actually been advocated as the one and only method for the permanent solution of the so-called labor problem.

Although most of the profit-sharing theories have been put into operation, the appearance and disappearance of profit-sharing schemes have been so irregular and infrequent that one may not appropriately speak of a profit-sharing movement. Profit sharing, in so far as it does exist in the United States at the present time, appears as a component part of a larger and more significant phenomenon in our industrial life, to wit, the tendency on the part of employers to create conditions that would mitigate the frequent and often violent disputes between themselves and their employees, thus fostering the development of a larger spirit of harmony and cooperation, and resulting, incidentally, in greater efficiency and larger gains.

Object Of The Study.

The object of this study is to furnish as complete and detailed a picture as possible of the present status of profit sharing in the United States, presenting descriptively and statistically the following facts: (1) Extent of the application of the principle in American trade and industry; (2) nature or character of the existing plans with particular reference to (a) factors determining profits to be distributed and (b) conditions under which profits are paid to employees; (3) proportion of the total employed who participate; (4) occupations or types of employment of participating employees; (5) benefits accruing to participating employees; (6) cost of plans to the employers; and (7) results secured through workings of the plans with special reference to factors tending to improve relations between employer and employee and to increase the efficiency and stability of the working force.

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