Scanlon plan

The Scanlon plan has been successfully used by a variety of public and private companies for many decades. These plans combine leadership, total workforce education, and widespread employee participation with a reward system linked to group and/or organization performance. The Scanlon plan is a gain sharing program in which employees share in pre-established cost savings, based upon employee effort. Formal employee participation is necessary with the Scanlon Plan, as well as periodic progress reporting and an incentive formula