The last component of the Gainsharing pyramid is Shared Rewards. After putting all of these steps together, employees are rewarded for the results of their improvement efforts.

There are some fundamental principles to use when building a shared reward system (pay model)

1. Decide what we value -- these are the things that are important to the success of the business 
   
   
2. Measure what we value
   
   
3. Reward what we value and the behaviors we seek
   
   
4. Don't reward what we don't value
   
   
5. Measure and reward that which employees can be taught to understand
   
   
6. Measure and reward that which employees can influence
   
   
7. Measure two to five performance variables
   
   
8. Measure and reward the achievement of small, incremental improvements
   
   
9. Uncap the payout (no upper limit to the pay model)
   
   
10. Build variability into the pay model. When performance improves, the rewards increase . . . when performance declines, rewards decrease
    
    
11. Reward employees with sufficient amounts of money that will cause a change in the way they think and behave toward their job. [Note: Based on surveys by Bovino Consulting Group, a reward opportunity of 5% of pay will begin to cause employees to think and behave differently about their work]
    
    
12. Create a link between what people do, the performance, and the reward
    
    
13. Make the pay model visual
    
    
14. Provide frequent reward opportunity (monthly or quarterly)
    
    
15. Reward employees soon after the end of the performance period (within 2-3 weeks after the end of the performance period)
    

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