What does a Profit-Sharing Plan typically provide to employees?

A Profit-Sharing Plan typically provides employees with a percentage of the company's pretax profits, which aligns their interests with the financial success of the organization. This arrangement incentivizes employees to contribute to the company’s performance, as their potential earnings increase when the company performs well.

Profit-sharing is designed to create a sense of ownership and participation among employees, as they directly benefit from the company's profitability. This can contribute to higher morale, increased productivity, and lower turnover rates, as employees feel more valued and invested in the organization’s success.

The other choices do not accurately reflect the core purpose of a profit-sharing plan. A fixed salary increase relates to base salary adjustments rather than profit distribution. Benefits for education pertain to support for learning and development, while immediate cash bonuses are typically one-time rewards rather than ongoing profit-sharing arrangements.