Gain Sharing Program
Improve Employee Performance & Profitability
Gain Sharing is a performance-based compensation program which provides incentive pay to employees for improvements made above current performance levels. This program is mutually beneficial for the organization and its employees. The company can simplify processes for cost reduction and fewer errors while employees are able to earn more compensation, thus increasing motivation for better job performance.
There are four key steps to developing a successful Gain Sharing Program. First, identify tasks that can be tracked and develop a baseline method for employees to follow. Validate the baseline rate for each task and make changes if necessary. Then, decide whether performance standards should be based on individual or team performance. If team performance is chosen, implement a process that allows employees to report team members who they believe are preventing the team from achieving the baseline rate. Next, decide when the performance-based compensation will be paid out—monthly payouts typically work best. Less frequent payouts discourage performance, but more frequent payouts can result in increased back-end work. Lastly, develop a set of alternative standards such as attendance, injury occurrences, or product defects to maintain quality and safety in conjunction with achieving performance goals.
The success of our Gain Sharing Program is guaranteed – Our consulting fee is 100% contingent on that success. This guarantee provides that our project consulting fee is contingent on significant improvements being achieved in the Plan.
Our Gain Sharing Program is highly successful in:
- Increasing employee productivity.
- Reducing labor and operating costs.
- Improving product and service quality.
- Attracting and retaining best employees.
- Achieving highly competitive performance levels.
Our Gain Sharing Plans have been very successful in improving the financial performance of our clients. On average, our Gain Sharing Plans generate annual savings of $4,700.00 per employee.