What is Gainsharing?

Gainsharing is an incentive system that has the objective of achieving an increase in productivity. What it addresses is that when the company's goals are achieved, it distributes the benefit among the workers, either in the form of bonuses or with an increase wagefor them.

This incentive system is committed to solidarity and cooperation, as employees will be heard and their opinions will be taken into account in decision-making.

How does gainsharing work?

Gainsharing, among other things, provides benefits to productivity, improves communication between management and employees, reduces internal conflicts and increases the involvement and commitment of workers. Without a doubt, it serves as motivation so that they can achieve better results.

This system is based mainly on four principles, such as:

  • Employee participation: they participate actively with the contribution of suggestions, improvements and decision-making.
  • Equality: the fairest thing is the distribution of benefits and successes among all members of the organization.
  • Commitment of all workers, who are very involved in the project and who will facilitate the implementation of gainsharing.
  • Feeling of belonging: there is a greater degree of identification with the and the project. The employees feel it as theirs.

Types of gainsharing

There are three standard models of gainsharing plans, although they can also be found customized:

  • Scanlon Plan: the aim of this plan is to encourage worker participation through improvement plans and suggestions.
  • Rucker Plan: quite similar to the previous one, where the relationship between the required production value and the total remuneration of a given work group is calculated.
  • Improshare: precise hours are set to achieve an adequate level of production. In the case of producing more quantity in less time than anticipated, a saving would be produced that would be distributed among the organization and the employees who are part of it.

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