Organisations using Gainsharing
On a world wide scale, there are hundreds of examples of successful Gainsharing which you can read about in the literature. The following is a selection of companies which have introduced Gainsharing with assistance from Dr. Angela Bowey during the past two years:
The Yellow Bus Company
The Yellow Bus Company operated a fleet of around 500 buses in the city of Auckland, New Zealand. It carried people on some 25 million passenger trips each year, covering a total distance of around 22 million kilometers annually. There were close to 900 employees, all of whom were included in the Gainsharing system which was introduced in December 1995 (except for the top four executives).
Gainsharing was part of the company's strategy for integrating its team together and achieving a common set of aims.
Many changes have been made and Gainsharing was a very important part of those changes from 1995 to late 1998. The former Chief Executive, Barry Turley, wrote in December 1995: "Gainsharing has a simple, but essential purpose. To involve staff in helping to improve our business". To start off, the Company opened a special "Gainshare" account and put money into it. Every quarter after that a share of the "Gain" earned by the company (income less costs and necessary payments) was added to this pool and an agreed proportion was shared out between the employees.
The amount paid to employees depended on overall company performance on key performance indicators; and all the details of Gainsharing at the Yellow Bus Company were developed in a consultative way.
There were many changes introduced in the Yellow Bus Company as a direct result of Gainsharing. The bus operators, maintenance engineers, service staff, and managers turned their attention to finding ways to make the company more successful. The employees of the Yellow Bus Company wanted to provide the best bus service to the people of Auckland! They were so successful that in late 1998 the company was sold to an international company, Stagecoach, for a sum in excess of one hundred and ten million dollars. Not bad for a company that a few years before had been losing nearly a million dollars a week!
New Zealand Can Ltd was a part of the AMCOR group. This plant, in south Auckland, New Zealand, employed around 70 people, and made aluminium cans for drinks like coca-cola and beer. Gainsharing was introduced just before Christmas 1995, and on Christmas Eve, 1996, the plant made a record number of cans in a day. The gainsharing process produced considerable benefits in terms of employee concern for the success of the business and greater understanding of the priorities for achieving success.It also rewarded the company's employees fairly for their efforts.
Chelsea Sugar Company Ltd.
Gainsharing was introduced early in 1996 as part of a programme of change which included introducing self-managed teams. An objective for Gainsharing was to support the restructuring and reward employees for their cooperation and commitment. The Chelsea Sugar Gainsharing System produced significant improvements in several key indicators for success.
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