|
Last week at my seminar in Shreveport, Louisiana, a subject that
I haven’t addressed in a few years came up — Christmas bonuses.
I am firmly opposed to Christmas bonuses because all someone has
to do to "earn" one is have a pulse. That makes Christmas
bonuses an entitlement.
Wikipedia defines an entitlement as
"A guarantee of access to
benefits because of rights or by agreement through law”.
While managers complain about the number of people who think the
world owes them something, they feed this entitlement mentality by creating
an expectation of a bonus on December 25 without expecting
anything in return.
Entitlements demotivate people. If you don't believe this, just
ask anyone on welfare how motivated they are to find a job while
the government is supporting them.
Instead of paying Christmas bonuses, pay “Year-End Bonuses” that
are tied to individual performance.
Bonuses that must be earned are called incentives.
Wikipedia defines an incentive as “Any factor that enables or
motivates a particular course of action”, which is EXACTLY
what we want.
(This is also why financial guru Dave Ramsey teaches parents to
pay kids “commissions” based on how many chores they do, instead
of an “allowance” for doing nothing.)
These year-end bonuses can be tied to anything from attendance to
actual job performance.
One manager who read an article I wrote about this a few years
ago e-mailed and said, “But if we do it that way, everyone won’t
get the same bonus”.
I wondered if he understood the concept of capitalism. A
publisher in Shanghai, China, translated my sixth book into
Mandarin Chinese, so he may have actually lived in a communist
country.
But in a capitalist economy, we don’t believe that everyone
should get the same compensation.
Those who work harder and accomplish more should be rewarded
more. Those who don’t, should not.
This is why Christmas bonuses are just as bad of an idea as
across-the-board raises.
They reward slackers, and punish achievers.
To Your Success,
P.S. If you’d like to know how to better structure your organization so
that it enables and motivates your employees – even if you have
pay freezes or furloughs –
click here.
|
Click on this button to
comment on today's issue
|
|
 |
|
|
|
|
|
 |
|
“Opportunity only knocks
once. If you don’t answer fast,
it will find somebody else that
will.” |
|
—
Glenn Shepard
|
|
 |
|
|
 |
|
|
|
Dear Glenn,
Three months ago, I went to
work for a company where I manage a department.
Before my arrival, two young team leaders were
co-managing and got the work done, but with no
remarkable achievements. The previous manager was a
great worker, but not a great manager, which contradicts what
they say about me.
My problem is zero buy-in from my department because
they want me to be there all the time like him, and
there is zero appreciation for anything I assist them in
resolving. I'm to the point of believing only time will
heal this. What else can I do?
P.S: I attended one of your
seminars; you are awesome!
Cyrus
in Louisiana
Dear Cyrus,
You obviously paid
attention in the seminar, because you hit the nail on
the head with the term "employee buy-in", which is
something we heavily focus on in next week's "How
to Motivate Employees" teleseminar.
You're also right on track with your belief that it
takes time for people to adjust from one manager's style
to another, especially when they're so different.
But the good news is that the proof will be in the
pudding. Be a great manager, get those remarkable
results your predecessor didn't, and I promise you that
as long as you're Firm but Fair and Consistent, your
team will get accustomed to your management style —
especially when they get credit for the remarkable
achievements they accomplish under your leadership.
P.S. And thanks for the
kind words.
Glenn In Nashville
|
|
Click
here to submit a question. If it's selected for
publication, you'll win your choice of eight items in
our prize closet. |
|
|
|
|
