Question

What are some of the challenges in designing an incentive system? How would you design a team-based compensation system such that free riders on the team cannot take advantage of the system?

Answer 1

Following are some of the challenges in designing an incentive system------

1. Timely implementation and communication of incentives.

2. Transperency and monitoring of incentive scheme

3. Inequity and relevancy.

4. consistency.

I would design as i would create a system where free rider cannot take advantage by requiring everyone to do special task and splitting it even. I will also offer reward such as better pay for those who do more work and have better qualified skill. i will require team evolution where you required to rate each others inputted work. since team based requires same pay , they wont get same benefits and improvements. people respond to incentives so its good to implement an incentive system.