What is gainsharing designed to do?

Gainsharing is primarily designed to promote collaboration and teamwork by rewarding employees for collective achievements toward organizational goals. This approach fosters a sense of shared responsibility among team members, encouraging them to work together to improve productivity, quality, and overall performance. In a gainsharing program, employees typically receive bonuses based on the achievements of their team or department, linking their financial rewards to the success of their collective efforts.

This model not only enhances motivation among employees to collaborate but also aligns their interests with that of the organization, as they work towards common objectives. It is a strategic approach that leverages the group's performance, reinforcing the idea that success is a shared endeavor, as opposed to focusing solely on individual accomplishments or other criteria like tenure.