ASSESSING DETERMINANTS OF THE SURVIVAL OF GAINSHARING PROGRAMS

ASSESSING DETERMINANTS OF THE SURVIVAL OF GAINSHARING PROGRAMS

  Utilizing survey data from 211 organizations with gainsharing experience, determinants of the survival of gainsharing were examined. Weibull hazard and ordered probit analyses showed that the following factors are significantly associated with program survival: employee approval in a vote, union participation in program administration, less dependence on outside consultants, re-training, new employee training, small bonus group, labor intensity, financial performance, major capital investment, and program performance. However, the impact of program performance on program survival is significantly weaker for young programs. Variables such as re-training, new employee training, small bonus group, and financial performance, were found to affect program survival via their influence on program performance.