TEAM PAY
Advice on project team pay
When it comes to rewarding members of project teams there are no easy answers. The big worry is that a cash bonus will cause all too much resentment, while non-cash rewards may fail to motivate. The latest edition of US business publication Harvard Management Update asked leading compensation experts for some practical ideas.
Here's what the practitioners and consultants said about making your project-team compensation work.
Make the cash payment meaningful: as Harvard Management Update says: If you can't pay more than a token amount, choose the non-cash route.
Link awards to measurable outcomes: bonuses are often linked to milestones — for example, getting a design approved.
Be creative: there are a host of imaginative ways to fund team rewards — take, for example, royalty arrangements or the offer of additional equity.
Non-cash awards: cash is only one way of rewarding project team participants. To quote one expert contacted by Harvard Management Update: People remember how they earned the video camera a lot longer than they did with the same number of cash dollars .
Want to know more?
Title: How to reward project teams , Harvard Management Update, July 2000, pp.6— 7.
Availability: contact Harvard Management Update in Boston, USA, tel: 001 617 783 7655, or for further information email the editor jcase@hbsp.harvard.edu
Jump to the web site . . . www.hbsp.harvard.edu