GAINSHARING: KEY TO BETTER EMPLOYEE RELATIONS IN UNION AND NON-UNION COMPANIES ALIKE

Gainsharing is a concept that was popular in the 80’s and as Dick Wessels of Wessels Sherman Joerg Liszka Laverty Seneczko, PC writes in an article from November 2009, it is gaining popularity again.

Gain sharing is a group pay-for-performance program that motivates and rewards employees for measurable improvements in performance in areas like productivity, quality, safety and customer service.  The whole idea is to improve the quality of work, reward employees and build a stronger bond between the employees and the company.

In the program, employee performance is quantified and given a dollar value.  When the performance reaches and exceeds a target threshold preset by management the company receives half the value of the improvement, the employees receive the other half.    The bonuses that employees earn usually have to be re-earned monthly to avoid complacency.

The article goes on to explain how the system works with 3 major points being employee involvement in plan design, simplicity, and open communication.  The program, it’s explained, reduces employees’ interest in complicated work rules and can often replace pay increases during negotiations, it’s my opinion that this program could work nicely with moving companies. 

Finally, the difference between gain sharing and profit sharing is spelled out along the gain sharing benefits of better employee behavior and effort, higher productivity, and improved employee attitudes.  Several related articles are listed for those who would like to read more on the topic.  To read the  article click Gain Sharing:  Key to Better Employee Relations in Union and Non-Union Companies Alike.

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