Capterra Glossary
Gain Sharing
Gain sharing is a way to incentivize third parties with a promise of business growth. Gains share or gain sharing can be between a business and a vendor, or a business and its employees. In either relationship, there are always benefits for both parties. As the profits of the business grow, so do the gains of the third party. The exact specifics of this will vary from contract to contract.
What Small and Midsize Businesses Need to Know About Gain Sharing
Gain sharing can give small businesses another tool to help them grow. It's a great way to incentivize reputable vendors and suppliers to work with a newer business. It can also motivate employees to go the extra mile and remain loyal to the business, reducing staff turnover.