What sort of bonuses should we pay? by Seth Godin:
Money, it’s been shown time and time again, is a demotivator. I’m not talking about a fair or even generous salary. Being a cheapskate is no way to find a great employee. But once people have joined your team, incremental money–bonuses and the like–usually demotivate people.
He is right. Why salary bonus and other incentives fail to meet their objectives by Dale Asberry.
Lean Manufacturing Visionary Jim Womack On Frontiers Of Lean Thinking by Jim Womack
by bonus systems motivating sales staff to make the month or make the quarter and producing a wave of orders at the end of the reporting period. A better approach to these problems is to revamp the bonuses so they are rolling averages rather that don’t encourage big batches of orders.
Good resources:
Even with salespeople bonus are usually a bad idea, Deming’s ideas at Markey’s Audio Visual:
Commission pay - after 10 people attended Deming seminar they stopped using commission pay “people are not motivated by money” people do have salaries they want or need and will change jobs… to get what they need. For commissioned employees pay set at average of last 3 years salary for 7 commission employees - 1 left.
Commission pay and bonus often set up a conflict between what is in the interest of the company and the employee. They lead to bunching of orders around quarterly quotas, deadlines and competitions. They lead salespeople to think their job is to sell whatever pays them the most not to assist the customer.
June 13th, 2007 at 11:04 pm
Shows of support only are valuable if backed up with actual support…
October 23rd, 2007 at 8:58 pm
I have posted several times about the need to shift our support to open access science and away from those who want continue outdated strategies that restrict the advancement of scientific ideas…