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March 27, 2010
Handling Individual and Group Incentives in Your Organization

In a BLR webinar entitled ‘Incentive Pay: Best Practices for Designing and Managing Pay-for-Performance Plans’, Dan Kleinman discusses the how individual and group incentives can be handled within the organization. He provides the following information regarding individual and group incentives:

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  • You must walk the fine line between encouraging the growth and performance of individual workers and building your organization as a whole
  • Therefore, take some time to compare and contrast the incentive rules and rewards for both individual employees and work teams or groups (or company divisions)
  • They should remain progressively in line as you go from single workers to large groups
  • Be prepared to deal with hidden dangers that come with group incentives. For example, will you give incremental bonuses if a work team achieves part of its goals, and are your group incentive targets dependent upon having a skilled leader or supervisor in place to keep individuals motivated?

Dan Kleinman is the principal of Dan Kleinman Consulting, a California-based compensation and human resource consulting firm. For the past 18 years, he has served as an independent consultant for a broad spectrum of regional, national, and international companies, providing compensation, performance, organizational planning, and reward-system design services. He can be reached at

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