Gainsharing Plan Design

Productivity & Quality Gainsharing  . . . A Keen Sense of Balance


Stockholders . . . Customers . . . Employees

The Productivity & Quality Gainsharing process balances the interests of the employees, the customers, and the stockholders. The plan must be designed with every group in mind and must not disadvantage or favor any one group.


Accuracy . . . Simplicity

Although the plan must be developed using accurate historical and/or budgeted data, the supporting documents/materials used to explain the plan must be simple, visual, and easy to understand. The plan features must be simple . . . the pay model must be simple . . . the reporting system must also be simple and user friendly.


Implementation . . . Design

We must appreciate the balance of time between implementation and design.

90% of the focus should be on:

  • Positive management practices
  • Creating an environment to support employee empowerment
  • Communication
  • Training
10% of the focus should be on the design of the pay model and plan features.

The plan design (plan features and pay model), once developed, requires minimal effort to maintain. On the other hand, the implementation efforts are ongoing and endless.

We need to remember that the pay model is only a small piece of the plan . . . the real gains come through employee involvement and productivity improvement.


1250 Ironwood Drive, Ste. #334 | Coeur d'Alene, Idaho 83814
Phone: (208) 765-3344 | Fax: (208) 664-6237
E-mail: bcg@bovino-consulting.com