Gainsharing is a bonus incentive system designed to improve productivity through employee involvement, with the gains from "working smarter" shared between the employer and the employees according to a predetermined formula (AFSCME, 1995). It includes (1) a financial measurement and feedback system to monitor company performance and distribute gains in the form of bonuses when appropriate, and (2) a focused involvement system to eliminate barriers to improved company performance (gainsharing.com, 2004). Gainsharing, in one form or another, has been around since the 1930's.