Bonuses in an agile organization?
A great question that I’ve heard several times now is “How do you award bonuses or implement employee incentive programs in an agile organization?”. As we’ve been rolling out our enterprise agile strategy at DTS, we’ve been wrestling with this question too. Since agile practices don’t encourage heroism or the individual developer but instead focus on team accomplishments, we thought that bonuses needed to be dished out on a team-wide basis. We’ve considered project based bonuses for the entire project team and we’ve also considered iteration based bonuses for the project team. In the project based model, we’ve been considering providing bonuses if our project teams complete their work ahead of schedule, under budget, and with 100% client acceptance. The structure of the bonus would be something like 1% of the total contract value to be divided amongst the project team as they see fit.











