Gainsharing Employee Rewards

Written by Patricia Skinner
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One of the most attractive and effective ways to movitivate your employees is to introduce some kind of gainsharing employee rewards. Linking your company's success to employee rewards means that each and every member of the workforce can understand and relate to the fact that his or her efforts matter and count. Unless and until your workers feel that at least part of the responsibility for business success rests with them, progress can be difficult. Many business owners have found gainsharing to be a perfect business tool for success.

Designing Gainsharing Employee Rewards

The mystery is why some gainsharing employee rewards don't have the expected effect. It is a fact that not all gainsharing schemes bring the success that is hoped for. There is always the possibility that there is some other reason for a business performing under par even when a system of gainsharing employee rewards is in place. If your gainsharing policy is not leading you where you want to be, you may benefit from consultation with a human resources expert who may be able to help you pinpoint problems or areas of possible improvement to your scheme.

For most companies that introduce gainsharing there is a steady improvement in output and revenues. Many experts see the linking of pay and remuneration to company performance as an essential factor for success. Anyone will put in more of an effort if they know that their paycheck at the end of the day is going to be linked to that effort.

Key issues in getting gainsharing employee rewards right though are the teamwork factor and employee involvement. It could be that if an employee knows that his reward is going to go up because other members of the team are working very hard, it may be a temptation to take things a little easier. Ways must be found to make sure that all members of a given team are pulling their weight or the overall success of the system is going to be hindered.


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