The final factor critical to the success of gainsharing is communication. This means that information that traditionally belongs to management now must be shared with everybody. Combining these critical factors of success into the design of gainsharing plan will give your company the formula for success. Benefits of Gainsharing Gainsharing provides a wide variety of benefits for a company that successfully implements the program. The company benefits from a more efficient operation because gainsharing put it in the interest of the workers to become more productive.
More productive workers wreak the benefits of the increase profits.
The money saved shows up in the increase in profits and in return, the employees earn there share of the profit. Sales also increase because gainsharing makes it a self-interest to run the maximum possible sales through the workers and physical assets to reduce fix cost per unit so that profits increase. Gainsharing links employees' self interest to improving company performance. Mr. Scanlon came up with his concept during the Great Depression when he noticed that for a company's survival, there was a requirement of cooperation rather than competition between labor and management. He came up with ideas to improve productivity thereby saving many organizations and jobs.