A technique that compensates workers based on improvements in the company's productivity. A Company shares productivity gains with the workforce.
Workers voluntarily participate in management to accept responsibility for major reforms.
Gains are measured and distributions are made frequently through a predetermined formula. Because this pay is only implemented when gains are achieved, gainsharing plans do not adversely affect company costs. Increases in production with equal or less effort. Equal levels of production with less effort. Advantages Helps companies achieve sustained increases in productivity.