Comments on: In praise of across-the-board bonuses http://blogs.reuters.com/felix-salmon/2013/08/18/in-praise-of-across-the-board-bonuses/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Brain Panchana http://blogs.reuters.com/felix-salmon/2013/08/18/in-praise-of-across-the-board-bonuses/comment-page-1/#comment-55687 Mon, 20 Oct 2014 06:38:18 +0000 https://blogs.reuters.com/felix-salmon/?p=22328#comment-55687 I received my qrlgcsju’S FOR Your Yuletide When i Dropped For each other At a shop! They are simply Now Relaxing I WISH We could Sleep at night Inside. It happens to be Worth the cost. Appreciate Adore Really enjoy These individuals!!

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By: realist50 http://blogs.reuters.com/felix-salmon/2013/08/18/in-praise-of-across-the-board-bonuses/comment-page-1/#comment-47864 Tue, 20 Aug 2013 23:56:33 +0000 https://blogs.reuters.com/felix-salmon/?p=22328#comment-47864 What Felix calls “across the board bonuses” are more commonly (and correctly) referred to as “profit sharing payments.” They make sense as a component of compensation, but they are compatible with also offering bonuses based on individual performance.

As for “trying to measure individual performance is a mug’s game”, I can’t believe that Felix truly thinks that. Is he really saying that he’s never found some colleagues – whether supervisors, peers, or subordinates – to be clearly better at their jobs than others? How does he think that people should be promoted or terminated? Drawing names out of a hat?

And, if some people are better performers than others, then it makes sense to reward those good performers disproportionately, for all the reasons of retention (and motivation) that Staberinde. I’ll certainly agree that evaluating individual performance is tough, but I don’t see that as a reason to throw one’s arms in the air and not even try.

I’ll also point out that it’s easy to criticize any particular system of compensation, because they are invariably imperfect, but the onus falls on someone to suggest a better one. As an example – paying salespeople commission solely on their own sales is easy to criticize when they won’t help each other and act like competitors rather than people working for the same company. Until that is, you therefore decide to pay salespeople commission based on group sales, and then have high performers leave because they don’t like sharing equally with their colleague who surfs the ‘net all day. Even Felix’s proposal here isn’t really a system of compensation, because someone, somehow, still has to decide if Carly stays in her job (or gets promoted, or gets fired) and whether she’s paid $50k plus a $7k bonus or $60k plus a $10k bonus.

On the plus side, I hope that Felix’s stated enthusiasm for the benefits of wage flexibility means that he’s realized the flaws in his arguments for a $15 per hour minimum wage.

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By: PhilH http://blogs.reuters.com/felix-salmon/2013/08/18/in-praise-of-across-the-board-bonuses/comment-page-1/#comment-47852 Tue, 20 Aug 2013 15:33:28 +0000 https://blogs.reuters.com/felix-salmon/?p=22328#comment-47852 One thing worth pointing out here in the context of economies like the UK where housing is a larger cost and home ownership is high; it is the base salary, not including the bonus, that is used to calculate salary multipliers. So reducing base salaries would cause a contraction in home ownership.

The other thing is that people get used to consistent bonuses; witness the outcry by traders when their assured bonuses were axed.

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By: JamesGoddard http://blogs.reuters.com/felix-salmon/2013/08/18/in-praise-of-across-the-board-bonuses/comment-page-1/#comment-47851 Tue, 20 Aug 2013 15:10:14 +0000 https://blogs.reuters.com/felix-salmon/?p=22328#comment-47851 This is a good, sensible article. A pleasure to read.

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By: FifthDecade http://blogs.reuters.com/felix-salmon/2013/08/18/in-praise-of-across-the-board-bonuses/comment-page-1/#comment-47850 Tue, 20 Aug 2013 09:59:23 +0000 https://blogs.reuters.com/felix-salmon/?p=22328#comment-47850 If there’s any doubt the bonus system as is just isn’t working properly, just look at this report about a study of bonuses for managers that showed that men’s bonuses are, on average, about twice as big as those for women – and the men’s salaries are already 25% higher on average.
http://www.bbc.co.uk/news/business-23761 607

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