1. Steer Teams With the Right Pay
Use of team-based compensation systems increased from 59% of surveyed orgs in 1990 to 80% by 1999
But “use” doesn’t equal “company-wide”
Should FastCat move toward a team-based system? If so, how?
One approach is base salary plus team-performance based bonus
Probably should also incorporate individual’s contribution to team performance
One issue that moderates team pay’s acceptance is corporate culture
Lantech (Louisville) example [now uses Co-wide bonus program based on profitability, frequent non-monetary rewards and recognition]
Must work to make sure Ees are not focused on “getting the check,” but why they are getting the check