PPT on Team Compensation

1. By Rashi Wadhwa

2. Team
Compen-sation
Team
Compen-sation
A group of people
with a full set of
complementary s
kills required to
complete
a task, job, or
project.
Compensation can
be money, a
payment meant to
give someone a fair
exchange for their
effort and output
Team-based pay is a
system of compensation in
which managers at a
company reward members
of a project or a
department team with
bonus compensation or
pay increases based on
their performance or the
successful completion of
goals.

3. Team Individual
Mission Critical.
Strictly based on Individual
Performance.
Teams are judged corporately as to
speed & accuracy, assuming each
member of the team required to
compete the task on time & at budget.
Every employee is typically measured &
compared based on his contribution to
the team.
Power struggles for credit when a task
goes well or blame when it goes poorly
can arise in a group compensation
model.
Individual compensation can breed
unethical competition as in commission
sales when staff members fight over a
customer or a sale.
Commission does not inspire team
performance.
Commission does inspire team
performance.

4.  There is no single “best way” to implement
team plans.
Promoting – “Thinking out of the box”
Better Communication
Helps in retention
Removing Job Boredom
Example: Wipro
Uses QPLC (Quarterly Performance Linked
Compensation)

5. Work Team
• Controls a business process such as customer service or
manufacturing. Product or service quality is a key criteria.
• Permanent work assignment and full-time commitment.
 Project Team
• Project is limited by completion time such as new product
design or construction project. Delivery time, budget
variance and design quality are some criteria.
• Full-time commitment; after project team members are
reassigned to different projects.

6.  Parallel Teams
• Used to solve specific problems such as quality, safety,
employee grievances or impact of technology change.
• Used in parallel to functional units where employees
spend most of their work time.
• Requires only a part-time commitment as team member.

7. I. Gain Share Plan
Employees are rewarded when the team achieves
some type of quantifiable performance gain. Often,
this is tied to gains in profits. Other measures may
include reduced waste and scrap, lower labour costs,
increased market share, etc.

8. II. Scanlon Plan
This approach is designed to lower labour costs
without lowering the level of activity. Incentives are a
function of payroll costs divided by net sales. The
resulting figures are adjusted to provide a split
between team members and the company, with
provisions to provide some emergency reserves to
compensate for periods of low productivity.

9. III. Improshare ( improved
productivity through sharing)
Plan developers find a standard of production
that reliably predicts the expected number of
hours required to produce a predetermined
output. Employees are rewarded for besting
that standard in a 50/50 split with management.

10. Team Rewards
Monetary
• Team Bonus
• Team Merit Pay
• Skilled Based Pay
• Gain-Sharing
• Spot Cash Rewards
Non- Monitory
• Team Recognition
Reward
• Team Celebration
• Merchandise
• Travel