How would you design a compensation package for a self-directed work team in an office setting?
My thoughts:
- Understand what you would have to pay to hire these folks today. The market determines their going rate, not you.
- Pay up to 15% above market grade in total compensation to attract top 10% employees. I find that paying more returns little value.
- Reward what you want to incentivize…team play. Offer a bonus of 10% to 15% based on the team’s productivity. Let them own the benchmarks where possible. Publish progress reports where everyone can see it.
- When employees or the entire team go the extra mile, give them “spot rewards:” tickets, cash, an afternoon off, etc. Surprise them and you will motivate them.
- Give rewards for new ideas generated at monthly suggestion meetings.
Do this, and you’ll be far ahead of most. I don’t like making things complicated –the above suggestions are about as simple and straightforward as possible.
Is there anything you would add to this list? Please e-mail your answer to don@hrthatworks.com
