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Where I work, annual bonuses work partially like that, and partially based on personal performance. It's a target percent of your salary (around 10% depending o
by delecti 4y ago
Where I work, annual bonuses work partially like that, and partially based on personal performance. It's a target percent of your salary (around 10% depending on level), with multipliers for personal and company performance (ranging from 0-200%). This year my bonus was roughly 1/3 my base salary because the company performed well, and I received a good review. It certainly felt awesome, but at the same time, in a company of 100k+ employees, am I really personally responsible for how the company performs in any meaningful way?
What I'm saying is, I think the GP comment is right, that a bonus scheme is unlikely to materially affect performance.
- ip26 4y agoThat type of scheme does however help foster alignment, which can be more valuable than individual output. When the performance of the company is a bigger multiplier than your personal performance, you are financially more interested in the company doing well than your own stardom. It doesn’t really drive people to work 80 hour weeks, but that isn’t by itself valuable anyway.