The purpose of ProfitSharz is to help build productivity and sustainability inside organisations.
It uses a gain sharing approach where if employers and employees work together to achieve targets they set, and implement their own improvement processes, they can share some of the savings / gains that are made.
In the process, your organisation will get many good business improvement ideas. Many of these come from employees and employers collaborating. Further ideas also come from business improvement consultants such as ourselves or others you many choose to involve.
It works because both employees and employers are motivated by the link between increased income and some combination of improved performance, sustainability, job security, and employee satisfaction.
It can be done with or without any collective agreements that organisations may have in place with Unions.
Gain sharing is about increasing returns of both staff & management, driven by the good ideas that people have inside organisations, because they know best how to improve the organisation.
It’s a version of “profit sharing” or group bonus that can’t be fudged by either side.
Only the extra “profit” generated is shared (if any). The “profit pool” is actually the additional revenue that can be generated in many ways, including through savings, sustainability, productivity etc.
Overall, benefits include improved productivity, sustainability, motivation, innovation, harmony and employee and employer income.
In essence, if output or efficiency improves from X to Y, then a part of the increased revenue or efficiency gain is shared with staff. It helps make the organisation and jobs more secure... because the increased productivity / efficiency makes the organisation more competitive or efficient.
The concept is used in both the private and public sector.
Offline gain sharing was first proposed and used by management and unions in the USA some 80 years ago . For example, the so-called Scanlon Plan that was created in steel factories. It’s now used by some 20% of firms and other organisations in the USA... and a small number in Australia.
Currently, gain sharing is mainly done by consultants, including ourselves, in an offline process. Our ultimate goal is to do it via a more automated online processes that enables the process to be much more widely available. Our focus will also include sustainability (which has not been an emphasis of gain sharing elsewhere to date).
Some of the online tools are already developed, including a Scenario Calculator that can be seen on our site. Our current service is both an offline and online process, including appropriate consulting as agreed.
If an organisation already has a Union, the Union can assist with negotiation and implementation, and evidence based studies show this works well.
If an organisation does not have a Union present, either employees or employers can proceed with setting up a gain sharing process. (It is essentially a contract about how to implement a special type of group bonus. It is therefore based on contract law, rather than industrial law).
A gain sharing agreement is negotiated between the staff and management to agree how the “group bonus” will be split up, and to otherwise track the improvement of the organisation. ProfitSharz also offers offline and online tools that help with these processes.
Gain sharing is also good for the image of the organisation involved... with staff & community. It’s seen as a collaborative win for each of workers, the organisation, and the community.
Our initial evaluation and advice is free, and some part of subsequent services are done at low consulting rates to be agreed. If you wish, it is perfectly possible for an organisation to do a DIY version of gain sharing... with or without support or advice from ourselves.
If it’s appropriate, ProfitSharz can also provide training in how to facilitate, negotiate and implement a gain sharing agreement, including ways to improve productivity once an organisation has the gain sharing process in place. We can provide some appropriate combination of those services via a normal offline consulting process, including support by phone.
Gain sharing via ProfitSharz can be initiated or driven by employees or employers, although obviously both parties have to agree before it can proceed.
It uses a gain sharing approach where if employers and employees work together to achieve targets they set, and implement their own improvement processes, they can share some of the savings / gains that are made.
In the process, your organisation will get many good business improvement ideas. Many of these come from employees and employers collaborating. Further ideas also come from business improvement consultants such as ourselves or others you many choose to involve.
It works because both employees and employers are motivated by the link between increased income and some combination of improved performance, sustainability, job security, and employee satisfaction.
It can be done with or without any collective agreements that organisations may have in place with Unions.
Gain sharing is about increasing returns of both staff & management, driven by the good ideas that people have inside organisations, because they know best how to improve the organisation.
It’s a version of “profit sharing” or group bonus that can’t be fudged by either side.
Only the extra “profit” generated is shared (if any). The “profit pool” is actually the additional revenue that can be generated in many ways, including through savings, sustainability, productivity etc.
Overall, benefits include improved productivity, sustainability, motivation, innovation, harmony and employee and employer income.
In essence, if output or efficiency improves from X to Y, then a part of the increased revenue or efficiency gain is shared with staff. It helps make the organisation and jobs more secure... because the increased productivity / efficiency makes the organisation more competitive or efficient.
The concept is used in both the private and public sector.
Offline gain sharing was first proposed and used by management and unions in the USA some 80 years ago . For example, the so-called Scanlon Plan that was created in steel factories. It’s now used by some 20% of firms and other organisations in the USA... and a small number in Australia.
Currently, gain sharing is mainly done by consultants, including ourselves, in an offline process. Our ultimate goal is to do it via a more automated online processes that enables the process to be much more widely available. Our focus will also include sustainability (which has not been an emphasis of gain sharing elsewhere to date).
Some of the online tools are already developed, including a Scenario Calculator that can be seen on our site. Our current service is both an offline and online process, including appropriate consulting as agreed.
If an organisation already has a Union, the Union can assist with negotiation and implementation, and evidence based studies show this works well.
If an organisation does not have a Union present, either employees or employers can proceed with setting up a gain sharing process. (It is essentially a contract about how to implement a special type of group bonus. It is therefore based on contract law, rather than industrial law).
A gain sharing agreement is negotiated between the staff and management to agree how the “group bonus” will be split up, and to otherwise track the improvement of the organisation. ProfitSharz also offers offline and online tools that help with these processes.
Gain sharing is also good for the image of the organisation involved... with staff & community. It’s seen as a collaborative win for each of workers, the organisation, and the community.
Our initial evaluation and advice is free, and some part of subsequent services are done at low consulting rates to be agreed. If you wish, it is perfectly possible for an organisation to do a DIY version of gain sharing... with or without support or advice from ourselves.
If it’s appropriate, ProfitSharz can also provide training in how to facilitate, negotiate and implement a gain sharing agreement, including ways to improve productivity once an organisation has the gain sharing process in place. We can provide some appropriate combination of those services via a normal offline consulting process, including support by phone.
Gain sharing via ProfitSharz can be initiated or driven by employees or employers, although obviously both parties have to agree before it can proceed.
Location: Australia, Victoria, Melbourne