Gainsharing pays off — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
As employers experiment with all kinds of new incentive plans in an effort to motivate workers, gainsharing has proven particularly effective. It consists of a bonus plan that rewards work teams who increase productivity or cut costs. Popular at both small and large companies, gainsharing programs work best when organizations distribute bonuses monthly or quarterly, not annually. Businesses offer team incentives either through straight percentage bonuses (between 2 and 10 percent) or by dividing the pot of savings produced by the team. Example: A Greensburg, Ind., company saved $400,000 during the first seven months of gainsharing, and distributed half the savings to workers.
Get weekly updates on breaking news and business advice to help you advance your career! The week's top stories and resources will be sent right to your inbox. Choose the topics you're interested in:
While you may lack the resources to approve generous merit-based pay raises, you can still devise no- or low-cost incentives that are creative, unique and sure to fire up your crew....Click here to find out more.