Compensation within the organization can be standardized, either in monetary terms or abstract benefits, depending on the role and contribution. Monetary compensation is straightforward for tasks with clear value, often involving negotiation.

Centralized distribution of funds

In most cases, a team lead decides on the exact distribution of funds to projects or individuals. This speeds up decision-making time and increases autonomy for individuals.

References for market rates (like from or individual hourly/daily rates can help make a decision.

Decentralized distribution of funds

In some cases, centralized distribution is not possible. For example when it's not clear who the team lead is or when there is no standard or reference for rates.

Such situations with multiple participants involve a collaborative assessment of budget distribution to achieve a fair split. Compensation can extend beyond monetary rewards, including opportunities to learn, network, or gain exposure. The approach considers roles, responsibilities, and the unique value brought by each contributor.

See the Budget Splitting exercise to do it with your team.

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