Employee Gainshare Plan Case Study: Mechanical Seal OEM and Service

Scanlon Employee Gainshare Plan Case Study: Multi-State Mechanical Seal OEM and Service (250)Case Highlights:
The headquarters facility of a multi-state mechanical Seal OEM and Service organization. Approximately 225 employees at this location and another 85 in Baton Rouge, Louisiana.  The Division President1 was a confirmed believer in employee involvement and he was responsible for leading this organization to preeminence in the entire 2.5 billion dollar Corporation.

An employee contest was held to name the employee gainshare plan and the winner was “Close Harmony In Producing Seals” CHIPS.

Challenges:
The Company had just gone through a lengthy and divisive Union decertification effort that resulted in Union free status but left many wounds and a divided work force.  Morale was generally low, turnover was high in a very competitive hiring climate, and there was little teamwork.

Solutions:
The Division HR Manager worked with  a renowned Gainsharing expert2 to design, write and implement the plan. A fulltime Gainshare Coordinator3 position was established to assist in bringing the plan to maturity.  The organizations Chief Financial Operator4 became a strong believer and carried that message consistently by word and action.

Benefits:
Employee morale was dramatically improved. Employees took ownership in the processes and were pleased that they knew how all jobs and skill sets interacted to deliver high quality, on-time product.  The Divisions already stellar financial results improved significantly and the organization became an employer of choice in a very difficult hiring environment.

  1. Mr. Al Dubrow, subsequently became the President and Chief Operating Officer of the entire Energy Equipment Group.
  2. Dr. Timothy L. Ross
  3. Ms. Mary Miles, an outstanding employee oriented human resources professional
  4. Mr. Chris McKee, CFO