"I used to work for a large warehousing company at the start of my compensation career. When I joined, the team was struggling to find the right mix of personal bonuses and team bonuses. We needed the employees to work together to meet our goals, but we also needed to drive individual performance. We created a bonus system that rewards employees for their individual performance, The individual part of the bonus program paid out at 80%. Then we implemented a team bonus. If the team met all goals, employees were able to keep all 80% of their individual bonus and add 20% on for team performance, However, if the team performed poorly, not only did the employees miss out on the team bonus, but they also lose 50% of their individual bonus. This structure was well received by all and helped promote teamwork throughout the company."
