Which performance-based pay model should the marketing department consider to foster teamwork?

The option of team-based bonuses to promote collaboration is particularly effective in fostering teamwork within a marketing department. This approach aligns everyone's incentives towards the collective goals of the team rather than individual achievements. When bonuses are tied to the performance of the team as a whole, it encourages members to support each other, share information, and work cohesively to achieve common objectives. This model not only enhances collaboration but also builds a sense of shared responsibility, which can lead to improved overall performance and morale among team members.

In contrast, individual performance bonuses focus on personal achievements and may inadvertently promote competition rather than teamwork. Flat salary increases across the department could help maintain wage equity, but they do not create a direct connection to performance outcomes or encourage collaboration. Commission-based incentives tied to personal sales similarly prioritize individual accomplishments and can lead to a competitive environment that might undermine team cohesion. Therefore, team-based bonuses effectively align rewards with collaborative efforts, fostering a stronger team dynamic and enhancing overall marketing effectiveness.