How do you reward teamwork?
Many organizations try to set up self-managing teams. From an organizational point of view, this usually works, but assessment and reward remain a tricky issue. In this piece some handles and the four phases of team development and realizing teamwork
In practice, setting up self-managing teams often turns out to be more stubborn than the theory. This concerns matters such as responsibilities, tasks, assessments and remuneration. Often management does not dare to let go and / or the assessment – reward system is not sufficient. Problems often arise in large organizations, where uniform systems are maintained. Setting up a pilot project with the Central Human Resources is then the most chosen route.
Setting up a good assessment and reward system is related to the development of teams within an organization and can be divided into four phases
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First Phase – individual.
There is not yet talk of teams and the associated organizational structure. Employees are individually assessed and rewarded. Management directs according to the given hierarchy. The pay scales are often collective labor agreement related. The development of employees is not related to the development of teams and takes place along fixed steps. The rating is also classic: The manager determines.
Second phase – grouping.
In the second phase, the assessment and development of the individual is used more widely and competences are examined. The positive assessment of competences is linked to the wage growth of the employee and not just on the basis of periodicals.
The system of assessments changes significantly, for example by applying a 360 degree assessment. A few colleagues will also be given the opportunity to give their input, which will create a broader picture. In addition to the assessment, a development plan is also being set up [POP]
The link with the assessment creates a variable salary component. A possible variant is the variable elevation matrix.
An employee with rating C in position 70-80 has a growth potential of 4%. The matrix is structured in such a way that the growth rates increase as the RSP decreases and the better the evaluation. This structure reflects the so-called “learning curve”. The philosophy is that employees in their jobs grow fastest in job management and relevant experience in the first few years.
Third Phase. Team development.
In this phase, the organization makes a real step towards team-oriented work and assessment. In addition to the individual assessment and reward that still exists, a team reward is introduced. This is set on [smart] targets and has a clearly traceable bonus structure that is linked to the targets.
Employee growth is becoming more competence-oriented at the individual level, but is not yet fully team-related. The hierarchical structure changes because more responsibility is placed on the team. The manager takes a step back in the process.
Fourth stage. – Teams
In this last phase, we continue to build on an open and independent team structure. The team members and their assessment is fully incorporated into the team performance. The assessment on the aspect ‘team improvement’ is linked to a separate form of team reward. You could call this “improvement reward”.
There is a clear system of team targets, growth potential, individual contributions to the team, management as a coach and a clear set of required competencies and a flex matrix in which this is laid down.
.
First Phase – individual.
There is not yet talk of teams and the associated organizational structure. Employees are individually assessed and rewarded. Management directs according to the given hierarchy. The pay scales are often collective labor agreement related. The development of employees is not related to the development of teams and takes place along fixed steps. The rating is also classic: The manager determines.
Second phase – grouping.
In the second phase, the assessment and development of the individual is used more widely and competences are examined. The positive assessment of competences is linked to the wage growth of the employee and not just on the basis of periodicals.
The system of assessments changes significantly, for example by applying a 360 degree assessment. A few colleagues will also be given the opportunity to give their input, which will create a broader picture. In addition to the assessment, a development plan is also being set up [POP]
The link with the assessment creates a variable salary component. A possible variant is the variable elevation matrix.
An employee with rating C in position 70-80 has a growth potential of 4%. The matrix is structured in such a way that the growth rates increase as the RSP decreases and the better the evaluation. This structure reflects the so-called “learning curve”. The philosophy is that employees in their jobs grow fastest in job management and relevant experience in the first few years.
Third Phase. Team development.
In this phase, the organization makes a real step towards team-oriented work and assessment. In addition to the individual assessment and reward that still exists, a team reward is introduced. This is set on [smart] targets and has a clearly traceable bonus structure that is linked to the targets.
Employee growth is becoming more competence-oriented at the individual level, but is not yet fully team-related. The hierarchical structure changes because more responsibility is placed on the team. The manager takes a step back in the process.
Fourth stage. – Teams
In this last phase, we continue to build on an open and independent team structure. The team members and their assessment is fully incorporated into the team performance. The assessment on the aspect “team improvement” is linked to a separate Team Building.
Developing teams is often a long-term process. Employees but also the organization around it should grow in it. Letting go of traditional roles is not without certainty and not every individual will find his way in this. Attention should also be paid to the potential tensions within the team if not every participant delivers a proportional share. This can be individually related but also process related. Good coaching is essential in this.
The agreements with other departments or administrative levels also need to be revised. It must be clear to the organization beforehand what the benefits are of developing teams. This also provides the basis for monitoring the development of the team. The form of team reward. You could call this “improvement reward”.
There is a clear system of team targets, growth potential, individual contributions to the team, management as a coach and a clear set of required competencies and a flex matrix in which this is laid down.
