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It’s practically impossible to guarantee the alignment unless the bonus is a flat out share of the profits or paid after an employee has performed in an extraor
by Xylakant 8y ago
It’s practically impossible to guarantee the alignment unless the bonus is a flat out share of the profits or paid after an employee has performed in an extraordinary fashion without any pre-written bonus agreement. But any kind of variable payment agreement might be in perfect alignment with the companies goals at its inception by runs a substantial risk of loosing the alignment over time. Company goals change over time.
It’s totally ok if you feel like a bonus should be paid to an employee for achieving something special, but if your employees do not go beyond the bare minimum that keeps them their job, you’re in a kind of trouble that a bonus payment cannot fix.