Discover how offering group incentive pay based on team performance goals can dramatically increase productivity for underperforming teams. Expert insights for acing the SHRM-SCP certification exam.
Table of Contents
Question
Which is the best option for an HR director to use to increase productivity for an underperforming team?
Answer
Offer group incentive pay based on the team’s overall performance goals. Group incentive pay is the best option to promote teamwork and improve overall team performance.
Explanation
The best option for an HR director to increase productivity for an underperforming team is to offer group incentive pay based on the team’s overall performance goals.
Group incentive pay, also known as team-based pay, ties financial rewards to the collective performance and goal achievement of the entire team. This approach encourages collaboration, communication, and mutual accountability among team members. When the team’s compensation is linked to their aggregate results, it motivates them to work together more effectively to reach their shared objectives.
Some key benefits of group incentive pay for boosting team productivity include:
- Aligning individual efforts with team goals
- Fostering a culture of cooperation and shared ownership
- Encouraging team members to support and assist each other
- Promoting cross-functional collaboration and breaking down silos
- Incentivizing collective problem-solving and innovation
By offering a financial stake in the team’s overall success, group incentive pay harnesses the power of positive peer pressure. Team members are more likely to hold each other accountable, share knowledge and best practices, and go above and beyond to help the team succeed. This leads to improved efficiency, quality, and output for the team as a whole.
In contrast, individual incentives can sometimes breed internal competition and undermine teamwork. Group incentive pay keeps everyone rowing in the same direction.
Of course, for team-based pay to be effective, the performance goals must be clearly defined, fairly measured, and directly linked to team outcomes that members can influence. HR should work with team leaders to set appropriate targets and ensure the incentive plan is well-communicated and administered.
When implemented properly as part of a holistic performance management strategy, group incentive pay is a powerful tool for turning around underperforming teams and driving better business results. It’s an approach every HR professional should have in their toolkit.
SHRM Senior Certified Professional (SHRM-SCP) certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the SHRM-SCP exam and earn SHRM-SCP certification.