with payment. Team Production Over time, more firms have adopted team production instead of pursuing individual production. There are advantages and disadvantages to adopting team production. Team production can be more productive than individual protection, work can be distributed between employees based on each of their specific skill sets. It may be more efficient than leaving all the work to one sole individual. However, there are also disadvantages with team production. The time it takes to organize teams and have them cooperate can be time consuming. There is also the potential risk of having a free-rider problem, individuals within a team can get away with no contribution to the work and still be compensated the same amount as their peers. However, the free-rider problem can be eliminated. One solution is by organizing set protocols, this allows for easier communication and decision-making. This gives each member of the team responsibilities and requirements that are agreed upon. Punishing free-riders is another way to deter them from repeating the offense. Even though free-riding is an issue when working as a team, the benefits may outweigh the potential disadvantages: Many projects require a wide variety of skill sets, one individual is not likely to have all the required skills to complete the project by themselves. If members of the team have complementary skill sets, they will be able to benefit off each other allowing for more efficiency in the project. Teamwork offers different perspectives, each member may have a different way on how to handle the project. By sharing ideas, teams can produce a better quality work than if the project was done by an individual. Easier for firms to hire people with less skills, each specializing in a few skills than hiring an individual with a wide variety of skills. Individuals with a high skill set are also more expensive to hire. It is unlikely that one individual will have an absolute advantage over everyone else, hence it may be better to split tasks among a group instead. Pay Compression Pay compression, a compensation issue where wage or salary levels are non-distinguishable between long-term employees and newly hired employees. This issue develops over time, and if no action is taken to resolve this issue, organizations run a risk of a turnover. Long-term employees will feel they are undervalued and will look for work elsewhere. However, a certain degree of pay compression may lead