It is a good idea for the GWC Valves company can allow their employees to be involved in profit-sharing plans, employee share purchase/stock ownership plan and as well as gain sharing plans. Incentives in organizations are what allow a company to become more successful since they are more attractive for qualified workers.
A profit sharing plan isn’t that common in Canadian organizations; there are fewer than 15% of organizations who do this as an incentive. Profit-sharing plans allow employees to share the company’s profits based on a plan depending on the number of hours you work and what your job is in the organization. When it comes to profit-sharing plans, they are very easy to administer and this is one incentive that is very attractive and motivating for employees who work at the organization.
Employee Share Purchase and Stock Ownership Plan
Stock ownership and employee share purchases are present at almost 60% of Canadian organizations with publicity-traded stock. Employers can pay for the stocks sometimes for the employees and the employees can contribute to their plans themselves. How this works out is there has to be a trust established to hold shares of company stock purchased for or issued to the employees in the organization.
A gainsharing plan is an incentive plan that allows employees to engage in a common effort in order to achieve productivity objectives that are set in order to share the gains. There are two popular types of gainsharing plans including either the Rucker and improshare plans. The Rucker formula consists of sales value minis materials and supplies which all get divided into payroll expenses. The improshare plan creates a production standard for each department. Gainsharing is an incentive that works well in stable organizations only where the goals and performance measures are predictable but they are less flexible.