Individual bonuses praise us for what we do. Regardless of how we’ve done it. They cause individualism, selfishness, shortcuts, and at best a good short-term result. They might focus on the wrong KPI.
Team bonuses praise us for who we are. For how we as individuals made the team perform. They cause synergy, innovation, and create positive-sum games. And at best a good long-term result.
I’m not into bonuses to make people work harder or create more output. But if you do insist, you might want to consider this first.