Gain sharing is an employee motivational technique where compensation is provided for measurable performance gains in areas such as sales, customer satisfaction, and cost reductions. This compensation is often awarded to employee teams for achieving specified goals.
Profit-related pay (PRP) refers to the situation where employee compensation is directly linked to the profitability of the employer. This approach aims to boost employee motivation, commitment, and performance by aligning their interests with the company’s commercial success.
