Which of the following are the benefits of gainsharing programs? Each correct answer represents a complete solution. Choose three.

Gainsharing programs are group-based incentive plans that foster a strong link between operational performance and employee compensation. A primary benefit is aligning employee efforts with organizational goals (A) by focusing on key performance measures like productivity or cost savings. This linkage enhances employee focus and awareness (C) of how their collective work impacts business results. Consequently, these programs directly help the organization achieve tangible improvements in those targeted key performance measures (D), creating a mutually beneficial outcome for both the company and its employees.

B. Employees are paid on the basis of group performance rather than individual performance: This is a defining characteristic or mechanism of a gainsharing program, not a benefit derived from it.

1. Martocchio, J. J. (2020). Strategic Compensation: A Human Resource Management Approach (10th ed.). Pearson. Chapter 8, "Incentive Pay," details gainsharing plans (e.g., Scanlon, Rucker, Improshare) and lists their benefits, including increased teamwork, alignment with company goals, and improved performance.

2. Gerhart, B., & Newman, J. M. (2020). Compensation (13th ed.). McGraw-Hill. Chapter 9, "Pay-for-Performance Plans," explains that gainsharing's purpose is to improve group performance and align employee and organizational interests.

3. Welbourne, T. M., & Gomez-Mejia, L. R. (1995). Gainsharing: A critical review and a future research agenda. Journal of Management, 21(3), 559-609. https://doi.org/10.1177/014920639502100307. This review article extensively discusses the positive outcomes (benefits) of gainsharing, such as improved organizational performance and employee focus.