What Is the Fundamental Difference Between Profit-Sharing and Gainsharing

Short Answer

What is the fundamental difference between profit-sharing and gainsharing?
Profit-sharing rewards employees based on the profit the company earns, while gainsharing rewards employees on the basis of productivity improvements.
Profit-sharing has been shown to be more motivating for employees than gainsharing.
Profit-sharing allows more specific measurement of improvements than gainsharing.
Profit-sharing focuses on group rewards, while gainsharing focuses on individual rewards.
Profit-sharing is used mostly by large companies, while gainsharing is used mostly by small companies.