i think the largest obstacle is that performance bonuses are still paid ANNUALLY. If I have an amazing Q1/Q2/Q3, but a terrible Q4, guess what happens when payouts come around? Manager remembers the last thing you did.
if the industry really wants to transform performance, pay them out monthly or quarterly
The real answer is, they dont want to. In fact, I suspect you will see an industry trend to disband performance bonuses for all non C-level employees over the next 5-10 years.
> In fact, I suspect you will see an industry trend to disband performance bonuses for all non C-level employees over the next 5-10 years.
I doubt that. Bonuses are basically a portion of an employee's salary that can be rescinded at the company's whim. Employees won't simply start working for less, so eliminating bonuses would remove the company's ability to give more during the fat years and less during the lean years.
Terming them bonuses is actually wrongheaded, considering employees expect to get that money. Bonuses are on the offer letter...it's not like people show up their first day after accepting the offer and are told, "by the way, you'll get $X/yr bonus." They're actually concessions made by the employee during the negotiation phase to give the company flexibility over a portion of their salary. And I doubt we'll see companies want to give up that flexibility.
if the industry really wants to transform performance, pay them out monthly or quarterly
The real answer is, they dont want to. In fact, I suspect you will see an industry trend to disband performance bonuses for all non C-level employees over the next 5-10 years.