Sharing the financial gains with the people who help deliver them can form a valuable part of the overall incentive program for the company. SatiStar’s consultants can help custom design a gainsharing program for you.

Scope And Deliverables

Gainsharing is a corporate incentive plan designed to involve employees and management to increase productivity by directly linking compensation to specific productivity and cost gains.

Gains that can be easily and quantitatively measured, such as cost reduction, profit improvement, increased hours logged, increases in satisfactorily resolved complaints, yield improvements, reduction in scrap rates or materials used, are measured and entered into a predetermined compensation formula.

These gains are then shared with the employees. The intended result is a more proactive and efficient workforce with a keen interest in the corporate bottom line. Instead of rewarding input, compensation is tilted towards outcome and employees eager to enjoy further compensation will increase attention to organizational goals and objectives.

While gainsharing programs typically cover the entire corporation, they can also be applicable to a single operating unit, project team, department, functional area, or division.

Additional details on how to fit gainsharing into your overall compensation systems are shown on SatiStar’s page on Compensation

What We Will Do

  • Evaluate your current compensation and incentive programs.
  • Determine whether gainsharing makes sense for your organization.
  • Provide clear recommendations for the application of a gainsharing program.
  • Determine overall program costs and benefits.
  • Design the details of the program.
  • Ensure that the gainsharing program fits with the rest of your compensation system.
  • Ensure that the gainsharing program adheres to employment legislation and standards.
  • Provide guidance on effectively communicating the gainsharing program across the organization.
  • Facilitate the deployment of the gainsharing program.
  • Assist in setting up a results measurement and tracking system.

What We Need You To Do

  • Provide us with access to key internal resources for our evaluation of your current compensation programs.
  • Authorize these resources to provide us with relevant required compensation information, including access to employee confidential files as needed.
  • Ensure information is provided to us in a timely manner.
  • Review and approve recommendations as appropriate in a timely manner.
  • Implement approved recommendations.
  • Communicate as appropriate.


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