Abstract
Team pay can be a progressive and effective compensation component-if it is planned and implemented well. The fact is, companies must jump many hurdles before they can achieve all the benefits that team-based pay promises. Among those hurdles are employee obstacles, including suspicion, confusion, and cynicism; communication glitches; supervisor and manager obstacles, including fear of a loss of power; and executive obstacles, including fear of change and insecurity.
Company X found that the best approach for dealing with these obstacles is to explain to employees how market conditions necessitate the new pay system; make sure everyone in the organization knows and recognizes the importance of its purpose; provide training in finance and accounting to eliminate confusion; and constantly check that all systems and structures are in alignment with market conditions and the business strategy.
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