Guiding Principles
An organization that wants to institute some kind of variable team-based pay structure needs to follow a step-by-step approach. However, even before that, the organization needs to adhere to some basic guiding principles (Gross, 1995).
Principle 1: Goals Should Cover Areas That Team Members Can Directly Affect
“Otherwise, the team is disempowered. Compensation won't motivate employees unless there is a direct line of sight between performance and results. For example, when incentives are tied only to the final profit of a company or group, which can be affected by all sorts of market forces, the connection between performance and reward is weakened. At the same time, pay should bear some kind of relationship to the company's ...
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