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Location : AgileCoachCamp Wiki > Performance appraisals and rewards in Agile Performance appraisals and rewards in Agile

Performance appraisals and rewards in Agile

Performance appraisals and rewards in Agile

Problem statement : How might we influence performance appraisal systems in organisations to reward individuals who make the team successful ?

Approaches discussed :

Approach 1 : Reward all on the team equally for team outcomes. Flat hikes , open salary structure .
Example : Co-operative model ( L Tree Anslab) : skill based remuneration . 25% revenue set aside for common benefits for all in the company . Variable salaries ,
openness about salaries . team shares a common purpose

Pros : Focus on non monetary motivators , intrinsic motivation , continuous feedback and improvement
Cons : Team performance takes a hit, as top performers lose the motivation to excel

Approach 2 : System that considers team contributions and individual excellence / improvements ( weightage may vary based on context)
Pros : Retention of top performers
Cons : Focus shifts on individual achievements, and practices like swarming , helping others on the team take a hit