Gainsharing
From the Simple English Wikipedia, the free encyclopedia that anyone can change
Gainsharing is when an employer figures out how much to pay an employee based on how much money the company makes because of the employee's work. It may also take into account how much money the employee saves the company through changing processes or suppliers. It takes the approach that employees know best and the human resource is a key assest and contributor to increasing the competitive edge of a company.
Gainsharing can maximise productivity and performance, improve working relationships, simplify work, improve quality, reduce defects, allign goals and secure commitment. It is not suitable for every job or every company, therefore the research shows mixed results. It is vital that supervisors and managers are committed to the programme. It needs to be thouroughly researched within the company to ensure it is the correct reward strategy for the company and it will be accepted.
Power relationships change once a gainsharing process is installed as the employees start to have more control. Therefore supervisors and managers may resist as they feel undermined.
Another key question to bear in mind for the organisation is whether or not it is sustainable, including the impact of external markets.
