that employees have a way to realize tangible results from their efforts rather than simply receiving a predefined increase (Blencoe, 2000).
Gain sharing programs must be carefully administered so that employees believe that they are equitable. Some companies use a percentage of employees' salaries, and apply the same percentage across the entire organization. In this way, all employees receive the same relative bonus. Other companies provide a flat dollar amount to all employees; this has the net effect of being a greater bonus (relative to wages) for lower-paid workers than for those who are higher in the organization; however, this approach is rapidly falling from favor.
Gain sharing can help companies overcome years in which they might have lacked a proactive diversity program. By implementing a gain sharing program which is perceived as equitable and which rewards all employees for the strong performance of the organization, companies are able to foster a shift in the corporate
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