Why bonuses are bunk
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?