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Gain Sharing

In: Business and Management

Submitted By Charmom0040
Words 610
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Abstract

Circle Works is a leader in the bicycle industry, especially with the custom built bikes. As a new generation of bike builders enter the workforce it is imperative for Circle Works to remain a top competitor. To do this there is a need to recruit and retain valuable employees. Gain sharing is one such way to achieve this goal. Offering a productivity gain sharing incentive can encourage better teamwork, improve productivity, more employee involvement, and improve customer satisfaction while lowering costs. This incentive plan is based on actual performance and is paid out after the desired results are realized. This could make a substantial positive impact on the bottom line.

Circle Works is a leader in the bicycle industry. This company was founded 50 years ago on the basis that hard work, has and will continue to make this company a success. The custom built bikes are a consistent demand for the company. Today's technology has made many advances in this field. The design engineers have made great advances in ways to make the bicycles fit today's standards. The production teams that work hands on with these products everyday also have intricate knowledge on how to put these bicycles together with care and quality. With a new generation of bike builders entering the workforce, it is vital to the company to be able to recruit and retain valuable employees. Gain sharing is one such way that will enable this company to do precisely that. Gain sharing is an incentive program that provides employees with an incentive payment based on improved company performance. Productivity gain sharing plans are based on a mathematical formula that compares a baseline of performance with actual productivity during a given period.(Recardo/Pricone) When the actual productivity is greater than the baseline, a percentage of savings is…...

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