Nonetheless, if changes in capital equipment or business conditions would necessitate a change, the formula needs to be able to accommodate this. This is often a concern since our society is so accustomed to new and improved computers, automobiles and so many other things. The same situation should exist with the gainsharing program as takes place with each of these situations. The gainsharing always needs to be reviewed for improved angles or opportunities that would help the program succeed. The allure of the program will not diminish as long as it stays fresh with the methods used to share goals, results and areas for improvement.
Labor costs are frequently one of the largest costs a company incurs.
At the same time, the employees will get a benefit for these contributions also. Employees can also make a large impact on expenses such as materials, cost of goods sold or supplies. Again, when employees are given the incentive to address new ideas or reduce costs, they can generate ideas never even thought of before. It is important to realize that the degree of service or output does not get emphasized at the expense of quality. In fact, employees see quite clearly that quality issues are their concern now, not just the company's concern.