Gain Sharing

Gain Sharing Employers are often faced with the challenge of looking for ways to boost productivity and profitability while at the same time, motivating employees to accomplish organizational goals. For many employers, variable pay plans have risen to meet this challenge. A variable pay plan ties pay increases to increased performance and productivity. One of the more popular group variable pay plans is called gain sharing. Under gain sharing pay programs, both the employer and …

…to performance improvement. This step might be accomplished by using formal or informal suggestion systems, quality circles, training sessions or set managed work groups with regular meetings. The final step after the plan is implemented is to ensure that it stays current with the development of the organization. During this phase of the process, a clear statement of plan documents outlining conditions under which the plan may be suspended, terminated or modified should be developed.