11 Redesigning Rewards
Give at Least One Penny of Every Payroll Dollar to the People, to Give to Each Other
“The first thing companies need to be aware of is that there is a folly in telling people, ‘We want you to team up, we want you to work well together,’ and then rewarding them only as individuals. It’s asking people to live with an inherent contradiction and that’s obviously not easy. Any time rewards unduly favor individual achievement at the expense of collaborative achievement, you will get behaviors around competition and withholding that you don’t need and don’t want.
“How to do that is just make sure that, first, a substantial portion of the reward system is based on collective performance: How did our unit do? ...