What is scanlon plan?

The Scanlon Plan is a form of gainsharing that was developed by Joseph Scanlon in the 1930s. It is a participative pay system that aims to improve productivity and employee morale by involving workers in decision-making processes and sharing the financial benefits of improved performance.

Under the Scanlon Plan, employees are encouraged to suggest and implement cost-saving measures that can lead to increased efficiency and profits. In return, they receive a share of the cost savings or productivity gains they help to create. This system is based on the principle that workers who are involved in decision-making processes and have a stake in the company's success will be more motivated to work towards achieving common goals.

The Scanlon Plan has been popular in various industries, including manufacturing, healthcare, and government agencies. It is seen as a way to promote employee engagement, collaboration, and a sense of ownership in the organization.

Overall, the Scanlon Plan is a unique approach to performance-based pay that focuses on involving employees in the decision-making process and rewarding them for their contributions to the company's success.