“Gainsharing” is a popular management and incentive compensation strategy that is often used in manufacturing and by companies with industrial service lines. It is used to reduce costs by paying incentives to employees who develop or participate in cost-saving strategies. The amount of the “gainshare” incentive payment is typically based on the amount of cost savings produced by the employee, as determined by a preset formula and other performance measures. Read more here with free AAOS registration.
AAOS Now, June 2016.
Authored by Jim Daniel and John Cherf, M.D.