and all measurable performance levels can be vastly improved or running at peak levels, but because new construction sales plummet due to external economic factors causing overall profits to drop, his or her yearly bonus will reflect the downturn in the economy and not reflect the individual’s performance. The perception becomes instilled in the employee that doing a good job just does not matter. The employee becomes aware that doing a job just good enough to get by will be rewarded just the same as working hard. This instills an atmosphere mediocrity that cares little about inspiring greatness or trying harder or aiming higher.Additionally, the opposite perception can be just as harmful. An employee that only ever cared about doing just enough to get by will see the yearly bonus as reaffirmation to continue with putting forth a minimal effort. Especially in a profitable year for the company when the bonus may be higher than other years.While I believe in a system that rewards its employees when profits are up is beneficial and tying employees to the companies profits can be a tremendous motivator, I can not believe that this should be the one and only motivational tool used by the current owners. Nor do I believe that anything other than company profits should be used when determining the amount of the bonus. This simply allows for too much freedom of interpretation from the employee about the meaning of the size of the bonus and the reasons for getting a bonus to begin with.If the current administration is determined to keep with tradition and continue to use the current bonus system as a motivational tool, two different bonuses should be given. One tied to the profits of the company and one tied to the performance of the employee. I would go so far as to give out these bonuses at different times as well. That way an explanation can be given as to the size of the bonus and the meaning behind the bonus. The profit sharing bonus...
