One of the problems with gain-sharing plans is that they do not encourage employee participation.

This statement is false. Gain-sharing plans are designed to incentivize employee participation and encourage them to work together as a team to achieve common goals and objectives. These plans typically involve sharing in the productive gains, cost savings, or revenue generated from improved performance, giving employees a direct stake in the success of the organization. As such, gain-sharing plans can be an effective tool for promoting collaboration, engagement, and motivation among employees.