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Your Employee Matters


By July 1, 2013No Comments

How would you design a compensation package for a self-directed work team in an office setting?

My thoughts:

  1. Understand what you would have to pay to hire these folks today. The market determines their going rate, not you.
  2. Pay up to 15% above market grade in total compensation to attract top 10% employees. I find that paying more returns little value.
  3. Reward what you want to incentivize…team play. Offer a bonus of 10% to 15% based on the team’s productivity. Let them own the benchmarks where possible. Publish progress reports where everyone can see it.
  4. When employees or the entire team go the extra mile, give them “spot rewards:” tickets, cash, an afternoon off, etc. Surprise them and you will motivate them.
  5. Give rewards for new ideas generated at monthly suggestion meetings.

Do this, and you’ll be far ahead of most. I don’t like making things complicated –the above suggestions are about as simple and straightforward as possible.

Is there anything you would add to this list? Please e-mail your answer to