Sunday, December 13, 2009

Bonus

I liked today's Dilbert. It reminded me of this story NPR did a few months ago.



The story looked into how people in various occupations are compensated and contrasted it with the huge bonus culture on Wall St. that has been all over the news for the past year. Most jobs don't pay out large performance-based bonuses because it would be counter-productive. I'd argue that it's also been quite counter-productive on Wall St., but that's another story. Since most people think that they are above average (I know I am), close to half the of the office would be pretty disappointed if a large percentage of their compensation was tied to individual performance. The other big problem, which this cartoon illustrates perfectly, is that if individual performance is the only thing that is considered when paying bonuses, interoffice cooperation is seriously devalued and employees start behaving like freelancers at best and competitors at worst.

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