due to changes in production, hanson steel gave each employee 75 percent of the cost savings. hanson steel uses a ________ compensation plan.

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03-11-2021
Business

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due to changes in production, hanson steel gave each employee 75 percent of the cost savings. hanson steel uses a ________ compensation plan.

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Topeadeniran2idn Topeadeniran2idn · Answer 1 · 2021-11-15T07:43:33-05:00

Due to changes in production, Hanson steel gave each employee 75 percent of the cost savings. Hanson steel uses a gainsharing compensation plan.

A compensation plan refers to the practices, methods, and intentional approach that's used by an organization in maintaining financial interests and developing, retaining, attracting, and rewarding employees in an industry.

It should be noted that the gainsharing compensation plan refers to a compensation plan that is used to increase profitability as employees share in the company's gain. Since the workers share 75% of the cost savings, this is a gain-sharing compensation plan.

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