Gainsharing is an incentive plan that ________.
A) uses a trust to hold stock in individual employee accounts and distributes it to employees upon retirement
B) engages employees in a common effort to achieve a company's productivity objectives with any resulting cost-savings gains shared among employees and the company
C) contributes company shares of its own stock or cash to be used to purchase company stock to a trust established to purchase shares of the firm's stock for employees
D) provides tax advantages for employees by deferring income taxes, often until the employee retires
E) involves the firm regularly distributing a percentage of profits as profit shares to employees

Question

Quizplus · Accepted Answer

Gainsharing is an incentive plan that involves employees working together to achieve a company's productivity goals, with any resulting cost-savings gains shared between the employees and the company. This encourages employees to work more efficiently and productively, as they are directly rewarded for their efforts. Gainsharing plans can take many forms, but the underlying concept is the same: employees are incentivized to work hard and achieve cost-savings targets, which benefits both the company as a whole and the individual employees.

Gainsharing Is an Incentive Plan That ________