Which plan allows employees to share in cost savings or productivity gains realized by their efforts?

Question

Quizplus · Accepted Answer

Gain sharing allows employees to directly benefit from any cost savings or productivity gains that result from their efforts. This can encourage employees to work more efficiently and effectively, as they know they will reap the rewards of their hard work. Stock options and merit pay do not directly tie employees' pay to the company's savings or efficiency, and while bonuses may incentivize employees to work harder, they are usually based on other performance factors and are not tied to specific cost savings or productivity gains.

Which Plan Allows Employees to Share in Cost Savings or Productivity