Chief Water Cooler Officer will add the new title to her resume and begin a job search. And, in the interim, she will remain in the dissatisfied workers' club. In fact, with her newfound frustration, she may even recruit other employees as club members. Tied to Results Promotions and related salary increases reward individual performance, but bonus plans offer employees a way to share in the success of an organization. Incentives can be company-wide, or they may be reserved only for select staff members, most of whom are usually management.
Bonuses are also commonplace in certain departments or divisions, such as sales.
But again, before money is promised, management should evaluate employee perception. On the other hand, tying set bonuses to achievable results can push people to succeed. The most effective bonus plans are those that award different amounts for different results. A nominal bonus for achieving something is better than an employee giving her all and receiving nothing in return. In a New York Times article , author Jonathan D. Glater points to the bonus program implemented by one company.