How to Make Gainsharing Successful: The Collective Experience of 17 Facilities

Why are some gainsharing plans more successful than others? This article reports on the author's discussion with human resource managers from two major corporations. Participants had experience with gainsharing plans at 17 manufacturing sites. The managers' discussion focused on issues including both the technical and social aspects of gainsharing, performance results, plan design, implementation steps, employee involvement, and suggestions for improvement. This investigation of various gainsharing plans provides examples of commonalties in the successful plans, practices that were found to be most helpful in advancing performance, and advice for those who are planning to install a gainsharing plan. These managers agreed that a gainsharing plan can be a powerful tool for positive change.