Profit-Related Pay (UK)

Profit-Related Pay (PRP) is a financial incentive scheme in the UK where employees receive bonuses based on their company's profitability. This system aims to motivate staff by linking their earnings to the business's success, encouraging teamwork and productivity. The scheme can vary, but typically, a portion of the profits is set aside for employee bonuses, which may be distributed according to individual performance, department results, or equally among all employees. By aligning employees' interests with the company's financial health, PRP seeks to foster a shared commitment to achieving business goals.