It’s that time of the year again! We are talking about end of the year bonuses and how they can affect performance and employee morale. We talked about the pitfalls of performance reviews on episode 170, so today we’re going to combine that content with determining yearly bonuses. We’re huge fans of unhinging bonuses from performance due to the numerous problems this can cause. We will discuss the reasons in today’s episode and give you some alternative options to utilize when considering yearly bonuses.
Being mindful of this within your organization and using bonuses as a “thank you” rather than a performance expectation will help to minimize a toxic environment, especially around this time of year.