Gainsharing
As the Scanlon Plan developed a method to measure (calculate) gains (improvements) was created. The monetary gains were then shared with all employees. This calculation represents the bonus (monetary incentive) element of Gainsharing. This concept addresses the principle of equity. "It is fair to share." Everyone in a company makes a contribution to the organization's success. Why limit bonuses to the select few? People typically take pride in their work and have a strong desire to be respected for what they do. By sharing the company is communicating an important message to the work force: "We all contribute. That contribution is respected. Let's share in the financial benefits."