Incentive compensation management can help businesses encourage stronger team development within individual divisions of a company. Managers often base merit increases on whether employees have met specific and individual performance goals. Incorporating that same strategy to the overall team evaluation is another effective way to inspire improvements in collective performance.
According to Entrepreneur, managers often align their incentive programs with so-called “hard goals” related directly to sales metrics and other business data. While these strategies are often effective in inspiring employees to perform well individually, incorporating softer goals into the merit increases decision-making process can go a long way toward building a stronger team. For example, team members can be rewarded for their efforts to build and maintain a positive culture within the company with bonuses and other benefits.
Houston Chronicle said teams are often defined by the simple characteristic that they share and work toward common goals. While a focus on individual goals and metrics is a smart way for managers to understand how the individual units of a team are working, incentive and compensation management can also benefit from incorporating collective values into the mix. According to the University of California, San Francisco, evaluating performance is an essential step toward building high-quality business teams. When groups of employees understand how their own sales effectiveness metrics, for example, affect the overarching goals of the company, they can better work together to meet challenges and encourage improvements.
Bonus compensation software can help managers customize the right incentive system for their own employees. There’s no doubt any team’s effectiveness begins and ends with the performance of its individual employees. However, performance management can also be a valuable teambuilding tool. Not only can incentive compensation software automate the complex and time-consuming data analytics process of making merit decisions, it also allows employers to access a variety of flexible features that allow for the ability to tweak compensation incentives for unique goals.
