Gainsharing plans are considered successful if they "self-liquidate,' meaning that all the gains from increased employee productivity are distributed to the employees.

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Gainsharing plans are designed to incentivize employees to increase productivity, with a portion of the resulting financial gains shared among the employees. The goal is for the gains to be significant enough to fully offset the costs of implementing the plan, often referred to as "self-liquidation." The success of a gainsharing plan is determined by whether the gains are significant enough to cover the costs and whether the employees are motivated to improve their performance. If the gains are distributed entirely to the employees, it is a sign of a successful plan.

Gainsharing Plans Are Considered Successful If They "Self-Liquidate,' Meaning That