Case Study: Rejuvenating an Organization with Team Pay
AbstractTeam pay can be a progressive and effective compensation component-if it is planned and implemented well. The fact is, companies must jump many hurdles before they can achieve all the benefits that team-based pay promises. Among those hurdles are employee obstacles, including suspicion, confusion, and cynicism; communication glitches; supervisor and manager obstacles, including fear of a loss of power; and executive obstacles, including fear of change and insecurity. Company X found that the best approach for dealing with these obstacles is to explain to employees how market conditions necessitate the new pay system; make sure everyone in the organization knows and recognizes the importance of its purpose; provide training in finance and accounting to eliminate confusion; and constantly check that all systems and structures are in alignment with market conditions and the business strategy.