Definition of "gainsharing" [gainsharing]

• A compensation system in which companies share the financial value of performance gains, such as productivity, cost savings, or quality, with their workers. (noun)

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• "Sacramento, California, involved "gainsharing" -- allowing employees to pocket some of the savings they achieved through cooperative labor-management efforts to cut costs."
• "Of course, the financial types will often resist the notion of gainsharing, afraid of giving away "free money" and dubious that the approach will really work for the company."
• "In their effort to reduce waste and unnecessary costs, some in Congress have proposed mechanisms called "gainsharing" and rewarding physicians for "efficiency.""