DOES PROFIT SHARING ENHANCE PRODUCTIVITY: EVIDENCE FROM THE RETAIL FOOD INDUSTRY IN CANADA
Oct 02, 2020
DOI: 10.1504/IJBEX.2019.10022198
Published in: Int. J. Business Excellence
Publisher: Inderscience Enterprises Ltd.
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.