Moving from individual incentives to team based ones
First time poster here! We are in the midst of transforming our small consultancy and a key part of this is to move away from individual incentives in favour of team based ones. This is a big change for half of our people but we do all agree team focused is the way to go. But how do we do so without leaving people potentially worse off financially (some of our team are more comfortable bringing new business in than others so consequently earn more in BD incentives) but also balancing the financial needs of the business. We can see pros and cons with all ideas put forth so far, but would like to be fully transparent with how and what people earn incentive wise. Also any ideas how to determine team based goals would be welcome:)
Good to have you here posting your challenges!
Few questions to get a better picture:
* Am I correct in assuming you're using individual incentives for bringing in new business only? So just sales bonuses?
* Are there any more performance metrics you can think of that are not just about bringing new business in?
* What is the goal of teams? Are they multi-disciplinary teams focused on supplying specific services/products? Or are they functional teams?
* Do teams operate independently? Or is there lots of interdependency between various teams?
Good questions! Yes currently BD incentives for sales. We are only a team of 8 and we are all shareholders as well. So we would already get dividends. A team based incentive would therefore not necessarily need to be profit based to be effective. We are a management consultancy so service delivery is key.
You are a team of 8 and you are all shareholders as well. So you would already get dividends. So why do you need incentives? Especially if I think this are only financial incentives. If you follow your 8 trends, you should be motivated enough to do your best for the company und also for yourself.
Maybe you could every year separate a part of your dividends for special internal projects, The team thinks they are worht to be supoorted.
Or you finance team holidays.
Or you give the team members more free time.
But I really don't understand why you want to keep invcentives?
Whilst we are all shareholders, the number of shares comes down to how many you can afford to purchase. So everyone has a different amount and the dividends are still small. So one person might only have a 1% share but someone else has 5%. So the team incentive is to help prop up everyone’s income for outstanding work. But I do like the idea of other incentives like additional days off or financing holidays etc.
As a longtime consultant in strategy implementation I learned that it is much easier to consult / support / motivate / .. a client than to do what we recommend in our own company. If I search "incentive" on your website, I got some interesting results you have posted. eg:
- Bengt Holström: "“No incentive may be the best incentive, even for tasks that can be perfectly measured. History teaches us that targets and incentives aren’t always a good combination, and can lead to giant scandals."
- Haier’s ‘EMC model’
Have you already discussed or tried all the ideas on your website ;-)?
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