Team-Based Reward Structures and Their Impact on Team Trust

This article documents the advantages and disadvantages of team based rewards as it relates to compensation. At the center of this debate is trust. An organization must have an established culture of trust in order for this type of compensation to be effective. Teams built on a solid foundation of trust can benefit from team based rewards such as incentive pay, recognition, profit sharing, and gain sharing. Make a pro and con list regarding this compensation structure.