Does your incentive program REALLY drive performance?
You probably know someone, don’t you, who is a star performer who believes that her achievements go unrewarded?
If so, you probably also know an underachiever who gets more than he deserves.I
s there any greater disincentive to the high performer than knowing that under-performance seems to be equally rewarded?
Should there be a moratorium on bonuses?
I’ve talked about the value of incentives before, but it keeps coming to mind as I talk to senior executives who don’t seem to have spent any time at all considering whether their incentive plans are working as intended … or whether they need to be revised.
In some ways, it reminds me of the comment that Bloomberg attributed to Barney Frank, chairman of the House Financial Services Committee, during the $20 billion bonus scandals during the 2008-2009 financial meltdown.
According to Bloomberg, this was his comment … (more…)