Which type of performance-based pay is likely to reward the largest percentage of employees if criteria are met?

Profit sharing is likely to reward the largest percentage of employees if certain criteria are met because it typically involves distributing a portion of a company's profits to all employees rather than being based on individual performance or sales metrics. This approach aligns employees' interests with the overall success of the organization, as everyone is motivated to contribute to the company's profitability. Since profit sharing is generally available to all employees, it stands to benefit a broader group compared to other forms of performance-based pay, such as commission or merit pay, which may only apply to specific roles or individuals based on personal performance.

In commission-based pay structures, rewards are typically linked to sales performance and are primarily applicable to sales staff, resulting in fewer employees being incentivized directly. Similarly, merit pay usually focuses on individual performance evaluations, rewarding only those who meet specific performance criteria, thus not encompassing the entire workforce. Gainsharing, while designed to enhance collaboration and productivity among teams, may also be contingent upon group performance metrics, which might limit the percentage of employees receiving rewards compared to the broader application of profit sharing. This makes profit sharing a more inclusive form of performance-based pay, effectively engaging a larger percentage of employees in the incentive structure.