Definitions for "Gainsharing"
A contract structure where both the customer and provider share financially in the value created through the relationship. One example is when a service provider receives a share of the savings it generates for its client.
An incentive plan in which groups of employees receive awards based on increased profits, productivity or efficiency.
Gainsharing is a system that includes (1) a financial measurement and feedback system to monitor company performance and distributed gains in the form of bonuses when appropriate, and (2) a focused involvement system to eliminate bar¬riers to improved company performance. Gainsharing systems vary widely in terms of their design and the degree of which they are integrated into regular operating systems of the company.