Gainsharing

December 11th, 2007
[ General ]

I have a sad history of hobby based research into company compensation and rewards plans. One concept I’ve always been attracted to is that of gainsharing. The basic concept being to tie any form of compensation to actual productivity. When actual productivity increases above a baseline then the people making it happen see some benefit instead of only the so called powers that be.

The only formal plan I’ve researched in any depth is one called The Scanlon Plan. Years ago I found a used copy of an out of print book on the plan. I believe this is it, since reprinted.

“The Scanlon Plan was developed from the innovative work of Joseph Scanlon during the 1940s and 1950s. Joe’s experience as a steelworker and union leader during the Depression prompted him to conclude that a company’s health, indeed its very survival, required a climate of cooperation rather than competition between labor and management.”

Joe Scanlon worked very closely with Dr. Douglas McGregor in the development of the plan. If you haven’t read McGregor’s 1960 book The Human Side of Enterprise, I highly recommend it.

What’s my point here? Sorry, don’t have one, just some links and references to old reading.

Some Links…