Surplus-sharing

Surplus-sharing is a strategy where a business distributes additional profits—beyond normal earnings—to its employees or stakeholders. This approach rewards their contributions to the company's success, motivating improved performance and loyalty. Typically, the surplus is calculated after covering costs and ensuring financial stability, then shared based on predetermined formulas, such as profit percentage, individual performance, or seniority. Surplus-sharing aligns interests, encouraging teamwork and efficiency, and ensures everyone benefits when the company performs well.