Pros and cons of the employee bonus deprivation system

[subornaakter40]

In general, the described method of influencing employees is not as simple as it may seem. Thanks to the system of depriving employees of bonuses, the productivity and efficiency of the company really grow, and the costs become lower.

There are also a few other positive aspects:

The scheme as a whole is quite transparent, the criteria by which punishment is assigned are clearly spelled out.

Both superiors and subordinates las vegas email list are more responsible in their work.

The level of discipline in the team increases significantly.

In addition to the fact that the offender loses a certain amount of money, the moral factor also comes into play. A person feels condemned by colleagues whom he lets down by making mistakes. Here the effect of the so-called collective responsibility comes into play, which cannot go unnoticed by management and plays a significant role.

Such working conditions allow management to quickly assess the current situation, notice deviations in time and take measures to correct them (both through their own actions and by directing the work of department heads).

Pros and cons of the employee bonus deprivation system

Source: fizkes / shutterstock.com

Along with the listed advantages of introducing a system of deprivation of bonuses for employees, there are a number of points that negatively affect the work of enterprises:

These conditions imply the use of material punishment against employees, and this will not in any case make them loyal. Many employees will be dissatisfied with the state of affairs (both superiors and subordinates), and conflicts are also inevitable.

Such a measure will most likely act as a demotivator, will restrain people's potential and enthusiasm, and will not allow them to fully and actively develop their abilities.

The management is focused only on indicators; this becomes the main guideline when forming salaries, calculating and canceling additional payments.

The principles of this system often act as negative incentives for a manager who has to act in a tense emotional environment.

Relations between employees also become worse, because it often turns out that bonuses are almost always awarded to the same people, while others' salaries are often cut.

Not everything is smooth in the relationship between the boss and the rest of the team. There will definitely be those who think the boss's actions are wrong.

It turns out that before introducing a system of depriving employees of bonuses, everything should be carefully weighed, and both the positive and negative consequences of such working conditions should be assessed.

Here, it is necessary to pay attention to two important points, in relation to which the management most often makes mistakes. First: the conditions for accrual, cancellation and reduction of bonus payments are set out in the internal documentation of the enterprise in a confusing and vague way. This is the wrong approach. The employee must clearly understand how much money and for what merits he will receive, and for what will be deducted from him. The correct wording would be approximately as follows: "If the employee completes ten projects (or more) by the end of the agreed period, then the size of his bonus will be 45% of the established salary." Second point: the employee does not know that his bonus has been cut until the very last moment, the day of salary. This is wrong. The violations identified and their consequences should be reported immediately, otherwise the person will not understand what he is being punished for, and his work efficiency will most likely decrease due to such surprises in the form of non-payment of bonuses.