Sometimes, the “what” of rewards is not as complicated as the “how.” A post at TribeHR explains how to create a reward system that addresses both top performers and team achievements.
Context dictates when it is one person or a whole team who has really won success for the business. The most direct way to measure input is to create a peer-to-peer reward system where teammates formally identify each other’s successes. In this way, the team decides who receives individual reward. Simultaneously, the project manager or HR can take care of overall team-level rewards. But since giving a flat amount of money to all team members can be problematic, (The value of $500 might be less to a 5-year veteran than a new hire.) and offering a percentage of salary as reward has problems too, (Did everyone really earn that much money?) it is instead recommended to let the team collectively decide how to allocate reward money. The example given is that a team could take its $1000 reward and buy a pinball machine, or some high-end office supplies. Pretty slick idea!
You can read the original post here: http://tribehr.com/blog/how-to-reward-top-performers-or-team-achievement