And there’s no question that compensation inequity is a growing issue. On average, the CEO of a large U.S. company made $9.6 million in 2011, while the median pay for rank and file employees was about $39,000. Such striking differences often demoralize employees and lead to lower productivity, a poor attitude, and worse.
One solution to bridge the compensation gap is gainsharing, a self-funded process that can help you directly enhance organization-wide performance and the bottom line. Gainsharing program features are based on equity, identity, and involvement, and if used correctly, engage employees in the process of continuous improvement at micro and macro performance levels.