Why bonuses are bunk

Financial Mail - Investors Monthly - - Opening Bell -

We’ve sus­pected it for years, but now there’s ev­i­dence: per­for­mance bonuses are a use­less mo­ti­va­tional tool.

A sur­vey by con­sult­ing firm Wil­lis Tow­ers Wat­son showed that a quar­ter of em­ploy­ers ad­mit­ted they gave higher rank­ings than they should to sub-par staff. In part, this is be­cause the whole “as­sess­ment” process is so nasty.

A Tow­ers Wat­son con­sul­tant told Bloomberg that, partly, this is be­cause staff have built up an “en­ti­tle­ment men­tal­ity” around bonuses. While this may be bad news for bosses, it’s fan­tas­tic news for slack­ers. If they can slope in at 10 am and play on Face­book for a few hours, and still get the same re­ward as the guy who’s in at 6 am, why fight the sys­tem?

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