Introduction: Human assets are most productive of all assets in all organization and if these assets have to be developed and made productive, incentives should be offered. Though there are many kinds of incentives that can be offered ,it was found that profit sharing resulted in the greatest yield to the human assets .Employees knew that if they became productive they would earn a bonus and this would help hem recognize their productive levels .
Building of human assets through profit sharing: Retirement savings plans and profit sharing were considered to be the most important human asset building activity and though revolutionary in nature with a little foresight and great planning can be converted into a productive tool which could never be refused by any employee. Profit sharing as has been empirically proved, it the best ways to retain employees in an organization .when employees settle themselves into an organization for long periods of time they get associated with the firm and become the most productive asset and are very simple incentives to attract the right kind of people, invest in them and protect their retirement benefits. These are considered to be most common method of building human assets . organizations have to recognize that employees needed to build their assts while at work and it was in their interest to see that these needs were met .Employees also realized that the longer they stayed with the company better would be their retirement benefits. This was an economic incentive given by employers to build the strong human asset base. Employees were educated on the profit sharing plans. They were told that if the firm earned profits greater would be their benefits. So it automatically vested in the employees to make use of this incentive to get that extra benefit. This reduced labor turnovers and employees knew that if they became productive profits would naturally increase and with that their shares also. This was a direct way of building the human base in the organization. A strongly motivated labor force with profit sharing incentives would definitely make the organization earn well. It was in the interest of the employees. Profit sharing has earned corporate great value in terms of human assets and as very rightly said “and when the bonus comes, they know they've earned it. They know they're getting the reward because they took responsibility, because they increased the economic value of the company and strengthened the community. It's not a gift, and it's not an entitlement. It's payment for a job well done” (Jack Stack, President and CEO of SRC Holdings Corp.)
Human assets are built when employers share profits with their employees to show pride of ownership and it is also seen that these firms who have been sharing profits with employees have turned out marginally good productivity and lower turnover in labor even in times of great economic recession and downturns. It is always seen that when employees are invited to share profits they become more productive.
Profit sharing is not a short term incentive like wage hikes .These incentive are long term because employees who identify themselves with the firm for a good period of time are rewarded for their loyalty by profit sharing incentives. Employees have to associate themselves to long term commitment so that their efforts are transferred to corporate profits which are transferred back to them in the form of profits. This is long term association of employees with their employers where employees get to accrue their retirement benefits and if employees have to get their retirement benefits to have to serve the company for a long enough period of time. Hence this economic benefit is long term and pays off very well to both the employer and the employee .This allows for employer to bring in equity with financially rewarding performances. Since labor turnovers went very low this was a proxy for great leadership.
Profit sharing incentives need to be made a part of corporate and human resource policy from the beginning. This enables firms to hire the right people and the employees also to get attuned to the fact of ownership. There are no barriers for profit sharing incentives. Some firms start quite late when realization of high attrition levels set in and the firm is not able to find the right resources. So to attract the right resources and to motivate employees to stay back, profit sharing is introduced to become mutually beneficial to both .hence every firm needs to introduce profit sharing from the very beginning as this is the best form of asset creation and sustenance.
Conclusion:
Different motivational rewards are introduced by firms to increase employee productivity and efficiency, but this human asset base has to be made strong, hence profit sharing needs to be incorporated into the organization as a philosophy .

References:
Holmstrom, B., And Milgrom. P.,1994.``The Firm As An Incentive System,''American Economic Review.
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Weitzman, M. L., And Kruse, D., L., 1990. ``Profit Sharing And Productivity,'' In Blinder,
A., S., (eds.), Paying For Productivity: A Look At The Evidence. Brookings Institution 95- 139
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