The United States has a proud and long-standing history of honoring the individual. This is not surprising given that we, as a nation, were founded upon the principles of individual freedom and individual rights. But organizational life doesn't necessarily work this way. Organizations today are built on connections and the act of collaboration -- bringing diverse parties (from inside and outside the organization) to the table to work together -- is becoming a critical business capability.
But do our compensation programs reflect this?
Too many organizations rely on compensation approaches that focus solely the efforts and accomplishments of the lone individual. There is nothing wrong with the concept of individual rewards. The problem arises when the scale is completely tipped toward individual performance with no counterbalancing recognition of group results. In a company that professes to value teamwork, you then have competing messages blasting out. On the one hand, you are telling people to work together, share information and resources. On the other hand, you are telling them (loudly, via their paycheck) that you only pay attention to (and reward) their individual success.
If collaboration is truly critical to your organization's success, then your compensation package should include at least one group-level component. Group can mean team, department or the whole company, depending on your situation and needs. A good rule of thumb, though: When in doubt, go broad.
One of the best routes to follow in introducing rewards for teamwork is through a broad-based incentive plan. Some very powerful business results have been accomplished through group incentive plans that rallied an entire business unit or organization around making improvements in one or two key performance measures. (Of course, this doesn't happen through the incentive plan alone, but via an incentive plan that is coordinated with related communication and education efforts.)
Another avenue to pursue in rewarding a group can be through a recognition plan, which celebrates a group accomplishment with a non-cash award of some type. Think bagel breakfasts or pizza lunches, or a group outing of some kind. An organization I once worked with rewarded its employees company-wide with a paid day off when an important group goal was reached.
Remember that compensation plans are vehicles for communication as well as financial reward. The point here is to be sure that the messages they send really sync up with what's important to your organization's success.
Comments