As with Lincoln Electric's plan, this method of compensation works because of other aspects of the total system used for managing human resources in the company. The conditions that support the use of gain sharing include team based work, broadly defined job responsibilities, and a management philosophy that values employee involvement.
PAY THAT PUTS EARNINGS AT RISK and incentive based pay systems apply to a large percentage of the workforce. However, they're generally not used for sales personnel and high level executives, who frequently have their earnings placed Some companies have pushed the notion of pay throughout the organization. Nucor, a steel mill is well-known as a pioneer of this