Is a form of performance-related pay in which earnings or bonuses are related to the performance of a small group of employees who constitute an identifiable work team. While group-based incentives have long existed in traditional manufacturing industries, team-based pay tends to refer to recently developed systems, often applied to white-collar workers in the service sector, which are aimed deliberately at reinforcing new, team-based methods of working. In some cases, team-based pay may be used to motivate the work of a temporary project team which is working to a deadline or series of targets. In other cases, it may be used to motivate a permanent team involved in sales, production, or other ongoing activities. Central to all forms of team-based pay, however, is the notion of promoting teamwork through the offer of a shared reward and it is advocated as a corrective or alternative to the fragmenting effects of individual merit or appraisal-based pay. Despite its advocacy in recent years by writers on reward, the incidence of team-based pay appears to be limited and the main emphasis in white-collar work organizations continues to be on rewarding individual competence and performance.
Subjects: Human Resource Management.