For most people the term gainsharing is used as generically as aspirin. And, in fact most companies only prescribe aspirin--a quick fix to cure employee headaches--when attempting to set up an effective incentive plan.Not only did I enjoy Mr. Jackson's book, I can also relate first hand to the insights of his wisdom. I was a part of implementing two gainsharing plans during my career in human resources.Bill, as we know him relates that employees need to understand in a simple way what is expected of them. The formula used by Jackson's gainsharing team is based upon the "value-added" to what is sold out the door in relation to the people cost, less raw materials.In other words it is the ratio of what people cost compared to what people do.Through first hand-experience Mr. Jackson relates again and again how this "value-added" approach not only improves productivity but allows for the rewards to be shared with employees.
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