http://www.managementblog.org/archives/2008/08/29/an-effective-substitute/ It's not a lesson in learning to be nice to people. Management is about leverage and impact. Wed, 7 Jan 2009 01:24:57 +0000 http://wordpress.org/?v=2.5.1 http://www.managementblog.org/archives/2008/08/29/an-effective-substitute/#comment-23888 Ron Meledandri - Sentra Business Solutions Sun, 31 Aug 2008 17:10:22 +0000 http://www.managementblog.org/?p=940#comment-23888 Since I don't like absolute statements, I will say that giving bonuses is USUALLY a bad policy - about 99% of the time. In my experience, the bonus becomes "expected pay." After the first bonus is given, an employee feels a sense of entitlement. A salesman that I new said he never called on a particular company the day they gave out the bonuses becuse he hated to hear all of the employees complain about their bonues. The employees complained that the bonus was never big enough. They didn't look at it as something "extra" but rather an EXPECTED part of their compensation. Since I don't like absolute statements, I will say that giving bonuses is USUALLY a bad policy - about 99% of the time. In my experience, the bonus becomes "expected pay." After the first bonus is given, an employee feels a sense of entitlement. A salesman that I new said he never called on a particular company the day they gave out the bonuses becuse he hated to hear all of the employees complain about their bonues. The employees complained that the bonus was never big enough. They didn't look at it as something "extra" but rather an EXPECTED part of their compensation.

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