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

Fred WhittleseyCannabis Compensation Consultants, Conscious Compensation: The Impact Compensation Blog, Pay and Performance: The 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