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Showing posts with the label financial incentives

Just my thoughts #0778

Connectivity and Opportunity: Opportunities come when you uncover connections that others haven’t seen. Humans create events, which then feed back into the world and cause change. By interpreting and discovering interconnected elements more quickly or differently than others, we open doors to progress. For example, people realized that a multiplex cinema’s competitor was a theme park, not just another cinema—showing how movie theaters and outdoor theme parks were connected. Another case is Lego: while sales were declining, they initially blamed computer games. However, they later discovered the real issue was a shift in children’s play culture. These examples illustrate how recognizing invisible connections boosts your chances of staying competitive. - Joseph’s “just my thoughts”

Just my thoughts #0639

A hotel in the United States operated a call center to serve customers. The top call center employee received an additional bonus equal to one-third of their monthly salary. However, the same person was always the best employee. Here’s a question: for a company’s performance to improve, should bonuses go to those who perform well or to those who do not? Giving bonuses to underperformers can boost overall performance. The top employees are already performing at their best; their performance doesn’t significantly change. Just as paying a singer more doesn’t necessarily mean they sing better, paying less doesn’t mean they sing worse. In call centers, the best employees should be promoted to higher ranks and receive higher base salaries, not just bonuses. Offering bonuses primarily to those who are directly affected by them is the right motivational strategy . The purpose of a bonus is to influence those who can still improve, not to reward those already excelling. Money is simply a fun...