One of the questions we’re frequently asked by clients is if, and how, they should implement a bonus system. While we’re all for rewarding good work, let’s discuss why we feel a bonus “system” is a bad idea. The problems with bonus “systems” fall into three categories.
- Staff members come to rely on that little bit extra every quarter and are extremely disappointed (and often bitter) when the goal is not quite reached.
- Front and back staff frequently bicker over who caused the missed bonus ….did the front fail to collect sufficiently or to schedule production?….or did the back miss the boat by not managing to get enough done per visit?
- The bonus number must necessarily be a static growing number to really be an accurate percentage of production…..but employees are often upset and don’t see the fairness when the goal needs to go up.
Based on our experiences, a better system is to surprise staff members with random bonuses when production has been particularly good or you’ve all worked extra hard due to a very busy schedule. Book out an afternoon and give everyone a check and a paid afternoon to go shopping……this type of random bonus is never disappointing and always a morale booster.
