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Top 10 Realities of a Gain Share Direct Incentive Pay System

10/27/2013

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• The new Pay System is not an effort to give money to employees

• It is a system to share gains of the organization with employees

• In a significant way, the Pay System makes employees “owners”

• The system is a carrot, not a stick

• Unlike some organizations, this organization does not take money 
away from employees for poor performance

• It is all on the plus side

• If nothing changes, pay to individuals will not change

• The expectation is for large gains and large bonuses

• If you prove yourself to the Pay System, it will prove itself to you 
… give it your best shot!

• Again, the ultimate goal is to become a Performance Organization 
that is profitable each month … resulting in a win-win

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Introducing the Virtual Performance Company™

7/25/2013

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One design option for Gain Share is the Virtual Performance Company™. The idea is to build an organization within an organization. Anything from a small Work Group to a large division could be a virtual company. Virtual Revenue and Virtual Expenses are used to calculate Virtual Profit or Gain.

To get the right VPC mindset, ask yourself this series of questions:

  1. If you were going to outsource a functional area of your organization, such as billing or transcription, would you compare your costs and value or product / service to the costs and value of the outsourced work?
  2. If you were going to double the size of a functional area and sell your services or product in the open market, would you first estimate expenses and revenue of the new enterprise?
  3. Can any company perform well or 
  4. Would it help if employees in any enterprise were motivated, and also thought and acted like owners?
  5. If you do neither 1 or 2 above, would it still make sense to create formulas for Revenue and Expenses to be used to calculate Virtual Profit to gauge performance?
  6. Would it then make sense to share exceptional gains in Virtual Profit with associates thereby transforming everyone into an owner?

 If you answered yes to these questions, you should learn more about the Virtual Performance Company™.
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