Performance Based Pay
Available from Fox Lawson & Associates, a Division of GBS
Pay for performance programs are being implemented by companies nationwide as a means of promoting teamwork. In fact, the entire concept of a pay for performance program is based on the idea that when group effort is required to obtain rewards, then the individual members of the group will go out of their way to do more than is required of them. It's a way for employers to streamline their rewards systems and save money on expensive incentives.
In pay for performance programs, companies reward individual employees with monetary compensation if that employee's entire team or department meets certain goals within a specified time frame. In some company's, the entire business must meet certain goals before the compensation rewards are handed out. The theory behind this is based on the belief that employees will motivate and encourage each other to do well so that everyone can get the reward.