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[Music] when employees receive a temporary pay increase a type of bonus program is in effect bonuses can be awarded based on high levels of individual productivity performance awards or can result from the distribution of savings to the organization gain sharing where the benefits are distributed to groups or even the whole organization performance awards are akin to merit increases in that they are competitive and unequally distributed the difference is that they may be earned each year and they do not contribute to base salary they are used extensively at the federal level and for executive pay in state and local governments in gainsharing pay plans the organization and its employees divide the greater than expected gains realized through productivity and/or cost reductions gain sharing in short is designed to accomplish the same objective as individual incentives the linking of rewards with performance to succeed the technique requires a high degree of organizational trust as well a
