The “ideal” team compensation system ‐ an overview, part II

Teams have become a popular way to organize business because they offer companies the flexibility needed to meet the demands of the changing business environment. While many companies have been quick to organize their workforce into teams, they have not been as eager to implement team‐based compensation systems. However, if team‐based organizations continue to utilize old, individually‐oriented pay systems, they will not fully realize the benefit of highly cooperative and motivated work teams. The purpose of this two‐part article is to examine the “ideal” team compensation system. Together, both parts will review the basics of both teams and compensation and then explore the ideal team compensation system from three levels ‐ framework, critical elements, and other, operational considerations. Part I provided information through the ideal team compensation system framework. This article, Part II, looks at the critical elements and other, operational considerations.