Gainsharing
Today, companies use Gainsharing to  measure both the performance and reward employees when it improves. Companies use a pre-determined calculation (formula) to share the savings with all employees. The goals of a company’s Gainsharing plan depend on its cost structure and long-term competitive strategy and are tailored to fit the industry (manufacturing, service, or corporate). Information regarding the measures, formula, and gains (savings) is regularly and openly shared with all employees. Since the monetary gains are shared with employees, people develop more of a sense of ownership for their work and the company. People have a better understanding of how they influence the company's success.