The question - What is likely to be a better motivator, a small team bonus or a larger individual one?
The background - This relates to a team of 8 engineers providing IT services to external customers. Each individual has targets, we operate feedback, ooos and coaching plans. I have some budget to implement a bonus which would be about £50 per week, this could stretch a bit.
I see two ways of cutting this up. Give £50 to the person that performs best in relation to their targets each week. Or make it monthly and give £50 to every person if the team hit the whole month target. (The team member would have to have hit their own too)
My inclination is individual. An individual can only be responsible for their own behaviour and if each individual is trying harder the overall team benefits. Also, the bonus is more significant and worth having. Finally, being weekly it keeps it very current and a bad week doesn't put them out for a month. The downside is it may encourage selfish behaviour.
I should add, the majority of the team are regularly at or around their targets, so this isn't intended as a substitute for managing them properly, more of an extra carrot.
I would like to hear others thoughts and experiences in this area.
Thank you in advance.