Improshare is effective as evaluation of productivity is based on the work team. This evaluation is based upon the productivity gains which result from the increased efficiency of both the direct and indirect employees. Importer greatly encourages the concept of team effort and involvement. This bonus is not based on dollar savings, but rather the hours of worked saved due to increased efficiency and improvements in production. Interaction is increased among the entire organization as complete cooperation leads to increased pay due to 50 percent of all savings from improvements are given back to the employees of the corporation.
Profit sharing is also an incentive plan which has recently gained much recognition.
This plan allows an employee to contribute his or her ideas or thoughts towards increased efficiency to the organization. Based on the company's increased profit, assuming the idea is used, the employee is compensated accordingly with a cash payment of up to 50 percent of its profits resulting from his or her contribution. The amount of compensation will vary with each organization. The profit sharing plan also has positive benefits for the corporation with increased employee participation and cooperation towards common goals. Stimulation of the welfare of the organization as well as employee commitment towards quality increases.