Gain Sharing

Gain Sharing

A bonus given to an employee who finds and implements creative ways to increase revenue or reduce costs. In general, gain sharing involves giving the employee a portion of the extra revenue or the cost savings. The idea behind gain sharing is to encourage employees to work for the good of the company by making it in their best interests to do so.
References in periodicals archive ?
While there are several reasons this situation arises, the most common is the technique used to determine the gain sharing between partners.
Therefore, managers may choose other types of compensation systems, such as time rates and gain sharing (where part of compensation is linked to quality-adjusted productivity).
Gain sharing is still a problematic issue, but incentives based on quality and safety are legally permitted.
Such can be accomplished by implementing phantom stock and employee stock owner ship programs (ESOP), or the reward program that Eldred most favors: gain sharing.
* A PACE Performance Recognition Plan or gain sharing program.
Benefits data is given on health insurance, pension, vacation, holidays, life insurance, gain sharing, profit sharing, social security, workers' compensation and unemployment compensation.
Gain sharing is a mechanistic form of control system, and hence may be compatible with organizational trust.
Gain sharing typically means an arrangement whereby a hospital shares a portion of the dollars saved with physicians as a result of changes in their practice.
Ed Gerken said sharper focus will allow the company to fully gain the benefits of recently implemented changes that include an enterprisewide information systems project, a move toward cellular manufacturing and the addition of gain sharing.
The kinds of pay systems typically seen as worthwhile targets for public policy are (i) profit sharing (and related systems such as gain sharing plans based on plant or divisional profits or revenue) and (ii) Employee Stock Ownership Plans (ESOPs).
There are three basic forms of group-based pay arrangements: profit sharing, gain sharing, and employee stock ownership.