We have a new incentive plan, what could possibly go wrong? (almost everything)

Fred WhittleseyConscious Compensation: The Impact Compensation Blog, Pay and Performance: The Compensation Blog, The Cannabis Compensation Blog

In this week’s edition of The Economist, the columnist Bagehot writes “How the British government rules by algorithm” (subscription required, and well worth it!). Compensation professionals: don’t leave this blog posting just yet. I’ll cite three examples they reference that speak for themselves, all direct quotes from the concise one-page article. “Targets create three common problems. They produce perverse results … Read More

Pay for What Performance?

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

“$400 awarded to each Alaska Airlines employee.” http://seattletimes.nwsource.com/html/businesstechnology /2002748080_bizbriefs19.htmlThis headline could have just as easily read “Alaska Airlines Pays $4 million in bonuses for providing subpar customer satisfaction 1/3 of the time.” At the schools I attended, missing 1/3 of the answers was a score of 67% — a “D” — and I don’t remember any bonuses being paid for … Read More