Contact Us

Some Companies Are Actually Letting Co-Workers Determine Employee Bonuses

Co-Workers Selecting Bonuses
Thinkstock

The company bonus might be a novel way to motivate employees and reward good work throughout the year, but it’s sometimes hard to gauge at bigger companies.

That may be why some firms are trying a novel way to award bonuses.

Some companies are trying a new method of making performance bonuses more efficient and productive by letting their employees determine who deserves to earn them, according to The Wall Street Journal.

For instance, Coffee & Power in San Francisco, started offering staff stock in the company by giving each employee stock options to be distributed to co-workers.

They were each given two days to decide how to divide the stocks amongst themselves. Once the window  closed, the company reports each individual result to their employees, in addition to a distribution curve to prevent a small number of employees from receiving an unfair amount of the bonuses. The reviews are also done anonymously between employees.

Proponents of the idea believe this method of performance-based bonuses makes sure that employees who have actually done the hard work and made great strides for the company are rewarded accordingly. It also ensures that the right people are rewarded since co-workers often know each others’ level of contribution and effort better than their supervisors.

Opponents, however, argue that the idea could create a hostile work environment by creating tension between co-workers who don’t get bonuses they they believe they earned. Some also believe the method could make for competitive power struggles that turn into “popularity contests.”

[The Wall Street Journal]

More from Newstalk

Best of the Web

It appears that you already have an account created within our VIP network of sites on . To keep your points and personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account with your Facebook account, just click on the account activation button below. You will maintain your existing profile and VIP program points. After you do this, you will be able to always log in to http://newstalk1280.com using your Facebook account.

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

Register on NewsTalk 1280 WGBF quickly by logging in with your Facebook account. It's just as secure, and no password to remember!

Not a Member? Sign Up Here

Register on NewsTalk 1280 WGBF quickly by logging in with your Facebook account. It's just as secure, and no password to remember!