Bonus Schemes Should Be Handled with Care

Posted in Jobs and Recruitment on Saturday, the 27th of June, 2009.

Tagged: and

I was recently chatting with a colleague about bonus schemes, and it occurred to me that every single company I've worked for (that's four, if we're counting) has implemented at least one such scheme, and the outcome is always the same: pissed-off employees.

There seems to be a kind of unquestioned assumption that employees want bonus schemes, and that employers are being good employers by introducing them. Such schemes are, without exception, described as being a "benefit". After all, who doesn't enjoy receiving a bonus with their pay cheque? What could possibly go wrong?

I'd like to argue that bonus schemes can go wrong. In fact, they are harmful more often than not, and should be handled with care.

Comments

Posted by Nikolaj Bomann on Wednesday, the 28th of December, 2011.

Awesome blogpost. I'm about to develop our new strategy for Bonus Schemes, and reading this was really an inspiration :-)
Thanks

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