Characteristics of the Reward System for Teams
A team-based reward system is a way to compensate a group of people based on the combined contribution to a project or the organization. Defining the characteristics of your reward system for teams helps you set expectations and promote productivity. Creating a comprehensive reward system for team behavior allows you to acknowledge the benefits of setting goals for the entire team, not just one individual. While some team members may resent doing more work than other team members, over time each member should contribute to the effort in proportion to their compensation. Characteristics influencing reward system design decisions include individual factors, team size, organizational structure and environmental factors.
Age, race, gender, education and personality impact which rewards motivate individuals most. For example, some people respond best to extrinsic motivation, such as financial compensation in the form of bonuses, raises or promotions, which come from external sources. Others prefer to seek work on the team that provides personal satisfaction, known as intrinsic motivation. Using psychologist David McClelland’s Human Motivation Theory, you can identify an employee’s motivating drivers to assign them appropriate tasks and provide feedback effectively.
Team size, composition, skill level and stage of development influence your reward system. As you help teams progress through the stages of team development, including forming, storming, norming and performing, you can provide rewards that motivate the team to participate in team activities, contribute to productivity and address process improvement issues. For example, as your team forms, you can provide prizes during icebreaker activities to motivate team members to participate and get to know each other better. This typically leads to productivity later on.
Culture, industry, market share and other organizational factors impact your company’s reward system strategy. For example, if your goal is to attract the top talent from universities, you need to create a compelling brand presence on campuses to recruit and interview the best candidates. If your corporate culture provides desirable rewards, such as the potential for rapid advancement, financial bonuses and on-the-job perks, such as free food, games, and events for team members.
Economic conditions, government regulations, and competitive factors influence your reward system. These characteristics typically govern how often and how much you can reward your team members. Additionally, by analyzing the retention rate for team members you can evaluate it your reward decisions provide a compelling reason to reward teams as a whole. This helps you decide how to reward the team, with time off, money or prizes. It also determines what metrics you use, such as production rates, customer satisfaction or product errors.