A contract structure where both the customer and provider share financially in the value created through the relationship. One example is when a service provider receives a share of the savings it generates for its client.
An incentive plan in which groups of employees receive awards based on increased profits, productivity or efficiency.
Gainsharing is a system that includes (1) a financial measurement and feedback system to monitor company performance and distributed gains in the form of bonuses when appropriate, and (2) a focused involvement system to eliminate bar¬riers to improved company performance. Gainsharing systems vary widely in terms of their design and the degree of which they are integrated into regular operating systems of the company.
compensation system in which companies share the financial value of performance gains, such as productivity, cost savings, or quality, with their workers
This is a formal incentive pay system that rewards employees as a group for improving productivity. Groups of employees are financially rewarded for identifying and implementing cost saving techniques and practices. It uses objective measures of performance dollars and cents saved.
employees receive cash bonuses or payments based upon the improved productivity as reflected in "gains" in profits, costs savings, & output. Not based solely on profits but on any "gains" achieved. Page 138
The sharing with employees of greater-than expected gains in profits and/or productivity.
Gainsharing is a corporate incentive plan designed to involve employees with management to increase productivity by directly linking compensation to specific productivity and cost gains. Gains that can be easily and quantitatively measured, such as hours logged, complaints satisfactorily resolved or materials used, are measured and entered into a predetermined compensation formula. These gains are then shared with the employees.