An employee in a gainsharing plan can receive incentive awards even if the organization isn't profitable.

Question

Quizplus · Accepted Answer

Gainsharing plans are designed to provide incentives to employees for improving the efficiency and productivity of an organization. The awards are based on the achievement of predetermined goals related to cost savings or increased revenues. The plan can still provide incentives even if the organization is not profitable, as long as the goals are met.

An Employee in a Gainsharing Plan Can Receive Incentive Awards