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Innovative approaches to pay

A gain sharing plan is much more collectively or communally oriented. Under it, workers offer recommendations for improving work processes, including workflow, inventory control, and equipment and technology maintenance. If these recommendations are in fact implemented and lead to either higher productivity for the same cost or the same level of productivity for lower cost, two-thirds of the "gain" (or savings) is shared with every employee in the facility, from top management to the lowest-level jobs. The other third is retained as a return on capital.

The resurgent, widespread use of piece rate and gain sharing compensation strongly suggests that these arrangements provide substantial value over cost to companies, and that employees appreciate the pay – perhaps more than they would appreciate laundry services.