Profit-Sharing as a Catalyst for Recognition of Oil Company Employees in Ecuador

The purpose of this paper is to analyze the current financial employee participation scheme in Ecuador. Private companies, according to the law, have to pay fifteen percent of their profits to employees. In some companies this procedure represents a minimum benefit to employees. However, in the Ecuadorian oil industry this matter is relevant and mentioned in the hiring process as the most important part of employees´ compensation. Using references and data from different industries in the Ecuadorian market, this paper provides an analysis of this scheme as a mechanism of recognition and motivation for employees in private oil companies established in the country.