tag:blogger.com,1999:blog-33004692.post6471757323528407058..comments2023-10-31T12:58:36.729+01:00Comments on Evil HR Lady: An Inspiring Bonus StorySuzanne Lucashttp://www.blogger.com/profile/07129772885673695447noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-33004692.post-23919583499545676932007-06-04T13:04:00.000+02:002007-06-04T13:04:00.000+02:00Mike--I think that is a very valid point. Like yo...Mike--<BR/><BR/>I think that is a very valid point. Like you, I wonder about quality. But, from what the NYT said, no one who knows about this is questioning the quality of it.<BR/><BR/>Rewards need to be carefully structured to avoid the very problems you mentioned. The last thing you want is to reward the wrong behavior.<BR/><BR/>Like cost savings awards that don't take turnover cost into consideration. If you don't pay your people right, and you don't allow them necessary business expenses, sure you save money on those two lines, but if you are constantly recruiting because your current employees can't stand you--well, you don't deserve any awards.Evil HR Ladyhttps://www.blogger.com/profile/14506069540151526951noreply@blogger.comtag:blogger.com,1999:blog-33004692.post-42626885772940032392007-06-04T04:14:00.000+02:002007-06-04T04:14:00.000+02:00These things always sound good, but you absolutely...These things always sound good, but you absolutely must have checks on these kinds of performance bonuses, or the law of unintended consequences, coupled with greed, comes into play. Here's an example: A company I once worked for was having a problem with excess inventories of raw materials, so a plan was devised to pay bonuses to plant managers who kept their monthly inventories (as measured on a specific day each month) within specified limits. One plant manager had a tanker (a huge ship) of raw material wait two days to off-load at his plant in order to stay below the goal and collect his bonus (he created a plausible reason). The demurrage that had to be paid FAR exceeded any savings from the entire inventory control program. This is just one example, and I'm sure that many people could cite many more.<BR/><BR/>In the case of the highway overpass, I sure hope the city had inspectors looking at the quality of the work, since people traveling on it in the future are at risk if the emphasis was on just speed and not good workmanship. Don't get me wrong, I think these pay for performance programs are great, but they have to be done carefully and monitored closely. They aren't easy to do correctly.<BR/><BR/>Just one man's opinion.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-33004692.post-33586018426804407502007-06-03T22:23:00.000+02:002007-06-03T22:23:00.000+02:00Hmmmmm... I'm just scratching my head here and won...Hmmmmm... I'm just scratching my head here and wondering if any Board of Directors might think of a similar comp plan for the CEO of their company????? Sure seems to me that this could very well be the test case to prove that there should be a direct link between results and rewards! What a concept - and most alarmingly it took the Highway Jockeys in the People's Republic of California to pull it off - color me stumped!Patrick Williamshttps://www.blogger.com/profile/12827858742893047662noreply@blogger.com