Making the Team: A Guide for Managers

Types of Team Pay

There is no all-purpose team compensation plan. In this section, we consider four types of team pay or reward: Incentive pay, recognition, profit sharing, and gainsharing (see Table 3-1). Pay, in a large measure, is a communication device. According to Gross (1995), pay is one of the loudest and clearest ways a company can send a message to an employee. People tend to behave according to the way they are evaluated and paid. Therefore, if the organization values teamwork, team members must be ultimately recognized and compensated for teaming. First and foremost, employees must understand how the incentive system works in their company. Generally, the simpler, the better. For example, burying incentives and recognition for team ...