Due to changes in production, Hanson Steel gave each employee 75 percent of the cost savings. Hanson Steel uses a ________ compensation plan.

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Gainsharing is the distribution of savings or "gains" to groups of employees who reduced costs and increased measurable productivity. In one version (the so-called Scanlon plan), a portion of any cost savings, usually 75 percent, is distributed to employees.

Due to Changes in Production, Hanson Steel Gave Each Employee