Reward individual performance (Score 1)

Reward exceptional talent with exceptional compensation/benefits. Mediocre talent should get mediocre compensation. Poor talent should get shown the door.

Most IT organizations make it too difficult for the minions to see any direct correlation between individual performance and pay/promotions. Collective 'incentive plans' that dole out bonuses to entire organizations based on the performance of the organization as a whole generally lead to little incentive for individuals to perform better ("Why should I bust my rear-end, when I'm gonna get the same rotten 3% raise that the guy next to me who does nothing but read /. all day").