Team-Based Pay in the United Kingdom

Abstract

This article describes a trial of team pay in the U.K. health service. The trial aimed to test whether performance improvement could be encouraged through the use of rewards in settings where individual performance-related pay might be inappropriate. The pilot used a number of different sized teams and a variety of occupational groups and reward options—from cash to improvement funds. The experiment produced many service and organizational benefits. At the successful sites, more positive staff attitudes were also in evidence. The article acknowledges that some sites did not deliver as well as others and explores the reasons why. In conclusion, the article looks at success factors that might be applicable elsewhere: clear scheme purpose and leadership in the context of staff trust in management; with clear and simple targets, supported by reliable data; and good quality project management, including skilled communication. Optimal team size and structure depends on the scheme’s objectives.