As a manager, it’s your job to foster and encourage team identity. Research shows that even selfish individuals become cooperative — and possibly altruistic — when they feel that they’re part of a group. So how do you strengthen your team’s identity? Reward behavior that advances the goals of the group, rather than the individual. Offer your team bonuses, recognition, raises, flexibility, and opportunities based on the entire group’s performance. To avoid free-riding, individual rewards should be given to individuals who make important contributions to the team’s success. This rewards indispensable team members — the unsung heroes who work late, cover for colleagues, and enhance the success of the group. Combining individual and collective rewards ensures that individual members are encouraged and motivated to pursue the team’s goals and help the team succeed.
Source: HBR