Back مشاركة الربح Arabic Tantiéma Czech Gewinnbeteiligung German Profit sharing English Participación en los beneficios Spanish سهیم کردن کارگران در سود کارخانهها Persian Tantjema Lithuanian Programa de Participação nos Lucros e Resultados Portuguese Tantieme Romanian Тантьема Russian
Gainsharing is a system of management used by a business to increase profitability by motivating employees to improve their performance through involvement and participation. As their performance improves, employees share financially in the gain (improvement). Gainsharing’s goal is to improve performance and eliminate waste (time, energy, and materials) by motivating employees to work smarter as a team rather than just working harder.
Gainsharing should not be confused with profit sharing. There are many differences between Gainsharing and profit sharing. Gainsharing is also called Gain sharing, Gainshare, and Gain share. It could also be called "savings sharing." In other words, a company shares with employees the savings from improved performance.
There are two important parts of a Gainsharing system. One is a bonus calculation. The second is a structured system for employee involvement. Because of these two parts, Gainsharing is best seen as an "organizational development" tool. It is not just a bonus or "incentive plan." In order to get a better understanding of this concept one needs to look back at Gainsharing's history.