Performance Bonus Quotes

I have a very simple rule when it comes to management: hire the best people from your competitors, pay them more than they were earning, and give them bonuses and incentives based on their performance. That’s how you build a first-class operation.

In other industries, such as media and financial services, a large percentage of executive compensation is doled out in annual performance bonuses. These short-term goals (and yes, a year is definitely short term) can generate behaviors that are detrimental to creating long-term value.

Yeah,” Reid agrees. “There’s a fourth kid, too, who doesn’t perform.” “Like the Bonus Jonas,” I say.

It is worth pointing out that there has been some notable success with a concept known as ‘conditional cash transfers’; these are cash payments (in a sense, bonuses) made to give the poor an incentive to perform tasks that could help them escape poverty (for example, good school attendance, working a certain number of hours, improving test scores, seeing a doctor). The idea of conditional cash transfers has met with much success in developing countries such as Brazil, Mexico, Nicaragua and Peru (a similar programme is now being tested in the boroughs of New York City).

Our first big realization was that the remaining people were the highest performers, and it taught us that the best thing you can do for employees is hire only high performers to work alongside them. It’s a perk far better than foosball or free sushi or even a big signing bonus or the holy grail of stock options. Excellent colleagues, a clear purpose, and well-understood deliverables: that’s the powerful combination.

In the two decades after I left, I waited for the end of Wall Street as I had known it. The outrageous bonuses, the endless parade of rogue traders, the scandal that sank Drexel Burnham, the scandal that destroyed John Gutfreund and finished off Salomon Brothers, the crisis following the collapse of my old boss John Meriwether’s Long-Term Capital Management, the Internet bubble: Over and over again, the financial system was, in some narrow way, discredited. Yet the big Wall Street banks at the center of it just kept on growing, along with the sums of money that they doled out to twenty-six-year-olds to perform tasks of no obvious social utility. The rebellion by American youth against the money culture never happened. Why bother to overturn your parents’ world when you can buy it and sell off the pieces?

The second way was explained to me by a group of General Electric executives a few years back. I pressed them about their rather extreme ‘rank and yank’ system (which has been modified recently, but not much), where each year the bottom 10 percent of employees (‘C players’) are fired, the top 20 percent (‘A players’) get the lion’s share – about 80 percent – of the bonus money, and the mediocre middle 70 percent (‘B players’) get the remaining crumbs. I pressed them because a pile of studies shows that giving a few top performers most of the goodies damages team and organizational performance. This happens because people have no incentive to help others – but do have an incentive to undermine, bad-mouth, and demoralize coworkers, because pushing down others decreases the competition they face. Performance also suffers because hard workers who aren’t anointed A players become bitter and withhold effort.

Discouraging cooperation and common purpose. Rewarding individuals for measured performance diminishes the sense of common purpose as well as the social relationships that provide the unmeasureable motivation for cooperation and institutional effectiveness.7 Reward based on measured performance tends to promote not cooperation but competition. If the individuals or units respond to the incentives created, rather than aiding, assisting, and advising one another, they strive to maximize their own metrics, ignoring, or even sabotaging, their fellows. As Donald Berwick, a leading medical reformer, has recounted, One hospital CEO described to me his system of profit-center management, in which middle management bonuses depended on local budget performance. I asked him if one of his managers would transfer resources from his department to another’s if it would help the organization as a whole. “Yes,” the CEO answered honestly, “if he were crazy.

While ethical lapses can happen anywhere, organizations run with a finite mindset are especially susceptible to ethical fading. As discussed in the previous chapters, cultures that place excessive focus on quarterly or annual financial performance can put intense pressure on people to cut corners, bend rules and make other questionable decisions in order to hit the targets set for them. Unfortunately, those who behaved dubiously but hit their targets are rewarded, which sends a clear message about the organization’s priorities. Indeed, the reward systems in these organizations work to incentivize such behaviors. Those who meet their goals are given bonuses or promoted often without consideration of the manner in which they met their goals, while those who acted with integrity but missed their targets are penalized by being overlooked for recognition or advancement. This sends a message to everyone else in the organization that making the numbers is more important than acting ethically.

Convinced that struggle was the crucible of character, Rockefeller faced a delicate task in raising his children. He wanted to accumulate wealth while inculcating in them the values of his threadbare boyhood. The first step in saving them from extravagance was keeping them ignorant of their father’s affluence. Until they were adults, Rockefeller’s children never visited his office or refineries, and even then they were accompanied by company officials, never Father. At home, Rockefeller created a make-believe market economy, calling Cettie the “general manager” and requiring the children to keep careful account books.16They earned pocket money by performing chores and received two cents for killing flies, ten cents for sharpening pencils, five cents per hour for practicing their musical instruments, and a dollar for repairing vases. They were given two cents per day for abstaining from candy and a dime bonus for each consecutive day of abstinence. Each toiled in a separate patch of the vegetable garden, earning a penny for every ten weeds they pulled up. John Jr. got fifteen cents an hour for chopping wood and ten cents per day for superintending paths. Rockefeller took pride in training his children as miniature household workers. Years later, riding on a train with his thirteen-year-old daughter, he told a traveling companion, “This little girl is earning money already. You never could imagine how she does it. I have learned what my gas bills should average when the gas is managed with care, and I have told her that she can have for pin money all that she will save every month on this amount, so she goes around every night and keeps the gas turned down where it is not needed.”17 Rockefeller never tired of preaching economy and whenever a package arrived at home, he made a point of saving the paper and string. Cettie was equally vigilant. When the children clamored for bicycles, John suggested buying one for each child. “No,” said Cettie, “we will buy just one for all of them.” “But, my dear,” John protested, “tricycles do not cost much.” “That is true,” she replied. “It is not the cost. But if they have just one they will learn to give up to one another.”18 So the children shared a single bicycle. Amazingly enough, the four children probably grew up with a level of creature comforts not that far above what Rockefeller had known as a boy.

N.E.W.T. Level Questions 281-300: What house at Hogwarts did Moaning Myrtle belong to? Which dragon did Viktor Krum face in the first task of the Tri-Wizard tournament? Luna Lovegood believes in the existence of which invisible creatures that fly in through someone’s ears and cause temporary confusion? What are the names of the three Peverell brothers from the tale of the Deathly Hallows? Name the Hogwarts school motto and its meaning in English? Who is Arnold? What’s the address of Weasley’s Wizarding Wheezes? During Quidditch try-outs, who did Ron beat to become Gryffindor’s keeper? Who was the owner of the flying motorbike that Hagrid borrows to bring baby Harry to his aunt and uncle’s house? During the intense encounter with the troll in the female bathroom, what spell did Ron use to save Hermione? Which wizard, who is the head of the Department for the Regulation and Control of Magical Creatures at the Ministry of Magic lost his son in 1995? When Harry, Ron and Hermione apparate away from Bill and Fleur’s wedding, where do they end up? Name the spell that freezes or petrifies the body of the victim? What piece did Hermione replace in the game of Giant Chess? What bridge did Fenrir Greyback and a small group of Death Eaters destroy in London? Who replaced Minerva McGonagall as the new Deputy Headmistress, and became the new Muggle Studies teacher at Hogwarts? Where do Bill and Fleur Weasley live? What epitaph did Harry carve onto Dobby’s grave using Malfoy’s old wand? The opal neckless is a cursed Dark Object, supposedly it has taken the lives of nineteen different muggles. But who did it curse instead after a failed attempt by Malfoy to assassinate Dumbledore? Who sends Harry his letter of expulsion from Hogwarts for violating the law by performing magic in front of a muggle? FIND THE ANSWERS ON THE NEXT PAGE! N.E.W.T. Level Answers 281-300 Ravenclaw. Myrtle attended Hogwarts from 1940-1943. Chinese Firebolt. Wrackspurts. Antioch, Cadmus and Ignotus. “Draco dormiens nunquam titillandus” and “Never tickle a sleeping dragon.” Arnold was Ginny’s purple Pygmy Puff, or tiny Puffskein, bred by Fred and George. Number 93, Diagon Alley. Cormac McLaggen. Sirius Black. “Wingardium Leviosa”. Amos Diggory. Tottenham Court Road in London. “Petrificus Totalus”. Rook on R8. The Millenium Bridge. Alecto Carrow. Shell Cottage, Tinworth, Cornwall. “HERE LIES DOBBY, A FREE ELF.” Katie Bell. Malfalda Hopkirk, the witch responsible for the Improper use of Magic Office.

Less is more. “A few extremely well-chosen objectives,” Grove wrote, “impart a clear message about what we say ‘yes’ to and what we say ‘no’ to.” A limit of three to five OKRs per cycle leads companies, teams, and individuals to choose what matters most. In general, each objective should be tied to five or fewer key results. (See chapter 4, “Superpower #1: Focus and Commit to Priorities.”) Set goals from the bottom up. To promote engagement, teams and individuals should be encouraged to create roughly half of their own OKRs, in consultation with managers. When all goals are set top-down, motivation is corroded. (See chapter 7, “Superpower #2: Align and Connect for Teamwork.”) No dictating. OKRs are a cooperative social contract to establish priorities and define how progress will be measured. Even after company objectives are closed to debate, their key results continue to be negotiated. Collective agreement is essential to maximum goal achievement. (See chapter 7, “Superpower #2: Align and Connect for Teamwork.”) Stay flexible. If the climate has changed and an objective no longer seems practical or relevant as written, key results can be modified or even discarded mid-cycle. (See chapter 10, “Superpower #3: Track for Accountability.”) Dare to fail. “Output will tend to be greater,” Grove wrote, “when everybody strives for a level of achievement beyond [their] immediate grasp. . . . Such goal-setting is extremely important if what you want is peak performance from yourself and your subordinates.” While certain operational objectives must be met in full, aspirational OKRs should be uncomfortable and possibly unattainable. “Stretched goals,” as Grove called them, push organizations to new heights. (See chapter 12, “Superpower #4: Stretch for Amazing.”) A tool, not a weapon. The OKR system, Grove wrote, “is meant to pace a person—to put a stopwatch in his own hand so he can gauge his own performance. It is not a legal document upon which to base a performance review.” To encourage risk taking and prevent sandbagging, OKRs and bonuses are best kept separate. (See chapter 15, “Continuous Performance Management: OKRs and CFRs.”) Be patient; be resolute. Every process requires trial and error. As Grove told his iOPEC students, Intel “stumbled a lot of times” after adopting OKRs: “We didn’t fully understand the principal purpose of it. And we are kind of doing better with it as time goes on.” An organization may need up to four or five quarterly cycles to fully embrace the system, and even more than that to build mature goal muscle.

The Seventh Central Pay Commission was appointed in February 2014 by the Government of India (Ministry of Finance) under the Chairmanship of Justice Ashok Kumar Mathur. The Commission has been given 18 months to make its recommendations. The terms of reference of the Commission are as follows:  1. To examine, review, evolve and recommend changes that are desirable and feasible regarding the principles that should govern the emoluments structure including pay, allowances and other facilities/benefits, in cash or kind, having regard to rationalisation and simplification therein as well as the specialised needs of various departments, agencies and services, in respect of the following categories of employees:-  (i) Central Government employees—industrial and non-industrial; (ii) Personnel belonging to the All India Services; (iii) Personnel of the Union Territories; (iv) Officers and employees of the Indian Audit and Accounts Department; (v) Members of the regulatory bodies (excluding the RBI) set up under the Acts of Parliament; and (vi) Officers and employees of the Supreme Court.   2. To examine, review, evolve and recommend changes that are desirable and feasible regarding the principles that should govern the emoluments structure, concessions and facilities/benefits, in cash or kind, as well as the retirement benefits of the personnel belonging to the Defence Forces, having regard to the historical and traditional parties, with due emphasis on the aspects unique to these personnel.   3. To work out the framework for an emoluments structure linked with the need to attract the most suitable talent to government service, promote efficiency, accountability and responsibility in the work culture, and foster excellence in the public governance system to respond to the complex challenges of modern administration and the rapid political, social, economic and technological changes, with due regard to expectations of stakeholders, and to recommend appropriate training and capacity building through a competency based framework.   4. To examine the existing schemes of payment of bonus, keeping in view, inter-alia, its bearing upon performance and productivity and make recommendations on the general principles, financial parameters and conditions for an appropriate incentive scheme to reward excellence in productivity, performance and integrity.   5. To review the variety of existing allowances presently available to employees in addition to pay and suggest their rationalisation and simplification with a view to ensuring that the pay structure is so designed as to take these into account.   6. To examine the principles which should govern the structure of pension and other retirement benefits, including revision of pension in the case of employees who have retired prior to the date of effect of these recommendations, keeping in view that retirement benefits of all Central Government employees appointed on and after 01.01.2004 are covered by the New Pension Scheme (NPS).   7. To make recommendations on the above, keeping in view:  (i) the economic conditions in the country and the need for fiscal prudence; (ii) the need to ensure that adequate resources are available for developmental expenditures and welfare measures; (iii) the likely impact of the recommendations on the finances of the state governments, which usually adopt the recommendations with some modifications; (iv) the prevailing emolument structure and retirement benefits available to employees of Central Public Sector Undertakings; and (v) the best global practices and their adaptability and relevance in Indian conditions.   8. To recommend the date of effect of its recommendations on all the above.

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One of the biggest challenges implementing agile is the reward system. For example, individual salary scales and rewards can be decoupled from the function and substituted by group valuation rewards linked to the capacity of both the employee and/or the team. Or, it is possible to make a distinction between the fixed salary and flexible performance bonus, detached from the annual budget and not considered a personnel expense. The reward system is always the last to change, but it is crucial to include this subject in the initial conversations with the different stakeholders around agile projects.

We don’t think about saving money very often. When we finally do think about it, our thoughts rarely lead us to save more. To test the extent that the design of digital wallets could influence behavior, Dan and his colleagues conducted a large-scale experiment with thousands of customers of a mobile money-saving system in Kenya. Some participants received two text messages every week: one at the start of the week to remind them to save and another one at the end of the week with a summary of their savings. Other participants got slightly different text reminders: It was framed like it came from their kid, asking them to save for “our future.” Four other groups were bribed (formally known as “financially incentivized”) for saving. The first of these groups got a 10 percent bonus for the first 100 shillings that they saved. The second group got a 20 percent bonus for the first 100 shillings that they saved. The third and fourth groups got the same 10 percent and 20 percent bonuses for the first 100 shillings that they saved, but they got it together with loss aversion. (In these conditions, the researchers placed the full amount of the match—10 or 20 shillings—into their account at the beginning of the week. The participants were told that they would get the match based on how much they saved, and that the amount of the match that they did not save would be taken out of their account. Financially, this loss aversion approach was the same as the regular end-of-the-week match, but the idea was that experiencing money leaving their account would be painful and would get the participants to increase their savings.) A final set of participants received those same text messages plus a golden-colored coin with the numbers 1–24 engraved on it, to indicate the 24 weeks that the plan lasted. These participants were asked to place the coin somewhere visible in their home and scratch with a knife the number for that week to indicate if they saved or not.2 At the end of six months, the treatment that performed spectacularly better than every other was—drumroll please!—the coin. Every other treatment increased savings a bit, but those who received the coin saved about twice as much as those who only received text messages. You might think the winner would have been the 20 percent bonus or maybe the 20 percent bonus with loss aversion—and this is in fact what most people predict would be the most effective way to get people to save—but you’d be wrong.

Beyond that, I don’t buy the idea that if you dangle cash in front of your high-performing employees, they try harder. High performers naturally want to succeed and will devote all resources toward doing so whether they have a bonus hanging in front of their nose or not. I love this quote from former chief executive of Deutsche Bank John Cryan: “I have no idea why I was offered a contract with a bonus in it because I promise you I will not work any harder or any less hard in any year, in any day because someone is going to pay me more or less.” Any executive worth her paycheck would say the same.

More damningly, several studies of performance-related bonuses or salary increases have found that white men are rewarded at a higher rate than equally performing women and ethnic minorities, with one study of a financial corporation uncovering a 25% difference in performance-based bonuses between women and men in the same job.

We’ll also adopt a fairly strict pay-for-performance model in which you get paid nothing in your bad years—no cheating, like guaranteed bonuses or repriced stock options allowed—but you receive a very generous bonus, say $10 million, in your good years. At first glance this arrangement seems fair—because you only get paid when you perform. But a second glance reveals that over the long run, the gains that you make for your employer are essentially canceled out by your losses; yet your compensation averages out at a very handsome $5 million per year.

It was a moment where I realized that if we can back down that easily and we can get intimidated, then U.S. Soccer has the upper hand on us at all points in time because it didn’t take that much,” she adds. “We had the courage to say we were going to go on strike, and then, within a few days, we decided, no, we’ll get on the plane and play in Portugal.” During the Algarve Cup, discussions within the team continued and Langel met with U.S. Soccer for negotiations while the players were out of the country. By the time they got back, they were close to a deal with U.S. Soccer that would cover them both in the NWSL and in case the league folded. Striking was still on the table, but the players no longer felt it was necessary. Asked about a strike, U.S. Soccer president Sunil Gulati says he was never made aware that the team was considering it. In the end, the contract the two sides agreed to offered large increases in compensation for the national team. If the NWSL couldn’t get off the ground, salaries would go up between $13,000 and $31,000, depending on each player’s tier. But with the new league in place, salaries would stay almost the same while players would get an extra $50,000 NWSL salary. On top of their guaranteed income, more money than ever was available through performance bonuses and a $1.20 cut of every national team game ticket sold that would be put into a team pool. In the end, the biggest sticking point, however, wasn’t the compensation—it was locking the players into the NWSL. It became a requirement in their national team contract, and there was no backing out if the players didn’t like their club teams.

For me, any art I create is for my own happiness. If it makes anyone else happy, that is a bonus.

How To Collect Your Achievement Stories Before we can write our Achievement Stories, we need to identify each and every one. This will take some work, but the payoff is employment and higher wages and salaries. Because I want you to look as impressive as possible, I’m going to remind you of all of the places where your achievements can be found: Performance Reviews I worked at a place where, at the end of every year, my boss had to convince his peers why I should get a raise and or a bonus. As a result, my performance reviews were a great place to find achievements I might have forgotten about. Awards Every time you receive an award, you have evidence that you are special. Depending on the number of achievements, you might want to list your awards as achievements. Usually, the reason you received the award is an achievement. Promotions Getting promoted is an achievement. Your promotion says to the hiring manager, “This woman is so good that we gave her more responsibility and a higher salary.

How To Collect Your Achievement Stories

 Before we can write our Achievement Stories, we need to identify each and every one. This will take some work, but the payoff is employment and higher wages and salaries.

 Because I want you to look as impressive as possible, I’m going to remind you of all of the places where your achievements can be found:

 Performance Reviews 

I worked at a place where, at the end of every year, my boss had to convince his peers why I should get a raise and or a bonus. As a result, my performance reviews were a great place to find achievements I might have forgotten about.

 Awards 

Every time you receive an award, you have evidence that you are special. Depending on the number of achievements, you might want to list your awards as achievements. Usually, the reason you received the award is an achievement. 

Promotions 

Getting promoted is an achievement. Your promotion says to the hiring manager, “This woman is so good that we gave her more responsibility and a higher salary. Bosses and Coworkers If you’re wracking your brain trying to think of achievements, consider giving a list of the achievements you’ve identified to bosses and co-workers. Then ask them, “What’s missing? What have I left out?” Emails If you have access to your old emails, go through each one to see what you can find. I did this every year when my boss asked for my achievements, this gave him the ammunition he needed to negotiate for my raises. This is the ammunition you need to win over the hiring manager. LinkedIn Recommendations Just the other day, I was reading my LinkedIn recommendations and was reminded of an accomplishment I had not included in my LI profile or resume. As you read each recommendation, think about the work you did with that person. It may jog your memory and help you remember things you’ve left out.

Every Monday morning at Nest, that’s how my management meetings started: Who are the great people we want to hire? Are we making our hiring goals or retention metrics? If not, what’s the problem? What are the roadblocks? And how is the team doing? What issues do people have? How are performance reviews going? Who needs a bonus? How are we going to celebrate these accomplishments so the team feels valued? And, most importantly, are people leaving?

We’ve looked at over a dozen policies and processes that most companies have but that we don’t have at Netflix. These include: Vacation Policies Decision-Making Approvals Expense Policies Performance Improvement Plans Approval Processes Raise Pools Key Performance Indicators Management by Objective Travel Policies Decision Making by Committee Contract Sign-Offs Salary Bands Pay Grades Pay-Per-Performance Bonuses These are all ways of controlling people rather than inspiring them. It’s not easy to avoid chaos and anarchy as you remove these controls, but if you develop every employee’s sense of self-discipline and responsibility, help them develop enough knowledge to make good decisions, and develop a feedback culture to stimulate learning, you’ll be amazed at how effective your organization can be.

Here are four examples of Lead Magnets I use: A checklist that can be used to properly perform something I explained in a video. A template for determining, say, a business’s profit margin. An advanced guide that goes further into the details of a subject of one of my videos. A unique book that provides substantial value but is offered for free. For me, it is 11 Side Hustle Ideas to Make $500/Day from Your Phone. The appropriate opt-in incentive depends on your content. Here are other types of examples: A DIY carpenter could offer plans to make a corner table. A marketing YouTuber could offer scripts of what to say on sales phone calls. A landscaping expert might offer recommendations for which kinds of grass to use around the United States. YouTuber Nick True at Mapped Out Money, who makes video tutorials that teach the best practices for using the personal budgeting software YNAB, found that he gets the highest sign-up rates when he offers a checklist that relates to the video. His followers really like having a resource that they can use to put his advice into practice. Jess Dante of Love and London runs a YouTube channel helping viewers plan their trips to London by suggesting lesser-known restaurants and stores to visit. Her superstar opt-in incentive is a free London 101 Guide with everything a first-time visitor needs to know. It’s been downloaded more than 45,000 times. Where you make your call to action will also have an impact on your success building your email list. You can make your call to action in a variety of places or ways inside your videos. One of the best ways is to give a short, relevant tease of the bonus or resource you’re offering within the YouTube video and tell people where they can learn more. CHALLENGE Create a Lead Magnet. It’s time to create your first Lead Magnet using the process we’ve just outlined above. You can use your piece of content from the previous chapter as a base or start something new. Don’t spend more than two hours on the first iteration. If you want to turn it into a big thing later on, great. But start SMALL. Go to MillionDollarWeekend.com to get Lead Magnet templates! (See what I did there?)

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But keep in mind one ginormous caveat: Repeated "now that" bonuses can quickly become expected "if-then" entitlements-which can ultimately crater effective performance.. ... First, consider nontangible rewards. Praise and positive feedback are much less corrosive than cash and trophies. In fact, in Deci's original experiments, and in his subsequent analysis of other studies, he found that "positive feedback can have an enhancing effect on intrinsic motivation." So if the folks on the design team turn out a show-stopping poster marbe just walk into their offices and say, "Wow.

paying every teacher a bonus up-front and then taking the money back from subpar performers can be even more effective than conventional after-the-fact rewards.

Why do some of us work hard and some of us sit on our asses all day? Dan Pink, a New York Times and Wallstreet Journal bestselling author, argues that there are three main motivators―and they’re not what you think. Money doesn’t make the list. In fact, money can be a demotivator. It turns out that once you get beyond work that only requires rudimentary cognitive skill, higher monetary rewards are inversely related to performance. Instead, emotion becomes the driving force. More specifically, Pink defines the three main motivators as autonomy, mastery, and purpose.2 This has been backed up by numerous scientific studies. Here’s one: “Psychologists Teresa Amabile and Steven Kramer interviewed over 600 managers and found a shocking result. 95 percent of managers misunderstood what motivates employees. They thought what motivates employees was making money, getting raises and bonuses. In fact, after analyzing over 12,000 employee diary entries, they discovered that the number one work motivator was emotion, not financial incentive: It’s the feeling of making progress every day toward a meaningful goal.”3 Consider what this means. If you aren’t hardworking, maybe it’s not because you’re lazy, but because you hate what you’re working on! I believe there’s a hustler in all of us. It isn’t about your genetic makeup. It’s about your environment and the emotional state in which you’re operating. If you’re having trouble getting up in the morning and going to work, there’s a good chance you’d be happier hustling. You just need to find the right thing to be hustling toward, and the right people to support you. If you had all the free time in the world, what would you want to master? What would give you a sense of purpose? What would make your heart beat a little louder? The hustle is somewhere inside you. You just have to find it and set it free.

Amabile goes on to observe that “The more complex the activity, the more it’s hurt by extrinsic reward.” Interestingly, the studies suggest that flat salaries don’t demotivate, but piecework rates and bonuses do. Thus, it may be economically smart to give performance bonuses to people who flip burgers or dug ditches, but it’s probably smarter to decouple salary from performance in a programming shop and let people choose their own projects (both trends that the open-source world takes to their logical conclusions). Indeed, these results suggest that the only time it is a good idea to reward performance in programming is when the programmer is so motivated that he or she would have worked without the reward! Other researchers in the field are willing to point a finger straight at the issues of autonomy and creative control that so preoccupy hackers. “To the extent one’s experience of being self-determined is limited,” said Richard Ryan, associate psychology professor at the University of Rochester, “one’s creativity will be reduced as well.” In general, presenting any task as a means rather than an end in itself seems to demotivate. Even winning a competition with others or gaining peer esteem can be demotivating in this way if the victory is experienced as work for reward (which may explain why hackers are culturally prohibited from explicitly seeking or claiming that esteem).

Every really good, really experienced CEO I know shares one important characteristic: They tend to opt for the hard answer to organizational issues. If faced with giving everyone the same bonus to make things easy or with sharply rewarding performance and ruffling many feathers, they’ll ruffle the feathers.

There is an element of deceit associated with interventionism, accelerating in a professionalized society. It’s much easier to sell “Look what I did for you” than “Look what I avoided for you.” Of course a bonus system based on “performance” exacerbates the problem.

Sala conducted his own research. He chose 20 executives from a food-and-beverage company, half of whom had been rated as average performers by their colleagues while the other half were characterized as outstanding performers. All the executives took part in a two-hour interview on the topic of leadership performance. Two observers categorized the content of the interviews and noted humorous references. Humor that included put-downs of others was coded as negative, while humor used to point out funny things or absurdities was coded as positive. According to Sala, “The executives who had been ranked as outstanding used humor more than twice as often as average executives, a mean of 17.8 times per hour compared with 7.5 times per hour … When I looked at the executives’ compensation for the year, I found that the size of their bonuses correlated positively with their use of humor during the interviews. In other words, the funnier the executives were, the bigger the bonuses.

Another hidden danger with ‘switch and get rich’ is that older pensions might have guaranteed bonuses or annuity rate guarantees hidden away in the small print. Many of these will date from the 1980s and 1990s when interest rates were higher and stock-market performance was much better than it is today and will be for at least the next five to ten years. Most savers probably don’t know about these guarantees and may be lured into switching from older, better funds and thus losing valuable benefits.

Thinking about joining a startup? Ask for a hiring bonus equal to the exercise cost, early exercise rights, and NSOs instead of ISOs. Exercise as soon as possible and ASAP file an 83(b) Election. Recently hired? If you can afford to fully exercise your options and are permitted to do so, ask to get your ISOs converted to NSOs, perform an early exercise, and file an 83(b) Election.

When a man helps a colleague, the recipient feels indebted to him and is highly likely to return the favor. But when a woman helps out, the feeling of indebtedness is weaker. She’s communal, right? She wants to help others. Professor Flynn calls this the “gender discount” problem, and it means that women are paying a professional penalty for their presumed desire to be communal.10 On the other hand, when a man helps a coworker, it’s considered an imposition and he is compensated with more favorable performance evaluations and rewards like salary increases and bonuses. Even more frustrating, when a woman declines to help a colleague, she often receives less favorable reviews and fewer rewards. But a man who declines to help? He pays no penalty.11 Because

Countries competing against one another in the same array of products and services is not covered by Ricardian trade theory.   Offshoring doesn’t fit the Ricardian or the competitive idea of free trade. In fact, offshoring is not trade.   Offshoring is the practice of a firm relocating its production of goods or services for its home market to a foreign country. When an American firm moves production offshore, US GDP declines by the amount of the offshored production, and foreign GDP increases by that amount. Employment and consumer income decline in the US and rise abroad. The US tax base shrinks, resulting in reductions in public services or in higher taxes or a switch from tax finance to bond finance and higher debt service cost.   When the offshored production comes back to the US to be marketed, the US trade deficit increases dollar for dollar. The trade deficit is financed by turning over to foreigners US assets and their future income streams. Profits, dividends, interest, capital gains, rents, and tolls from leased toll roads now flow from American pockets to foreign pockets, thus worsening the current account deficit as well.   Who benefits from these income losses suffered by Americans? Clearly, the beneficiary is the foreign country to which the production is moved. The other prominent beneficiaries are the shareholders and the executives of the companies that offshore production. The lower labor costs raise profits, the share price, and the “performance bonuses” of corporate management.   Offshoring’s proponents claim that the lost incomes from job losses are offset by benefits to consumers from lower prices. Allegedly, the harm done to those who lose their jobs is more than offset by the benefit consumers in general get from the alleged lower prices. Yet, proponents are unable to cite studies that support this claim. The claim is based on the unexamined assumption that offshoring is free trade and, thereby, mutually beneficial.   Proponents of jobs offshoring also claim that the Americans who are left unemployed soon find equal or better jobs. This claim is based on the assumption that the demand for labor ensures full employment, and that people whose jobs have been moved abroad can be retrained for new jobs that are equal to or better than the jobs that were lost.   This claim is false.

Zuckerberg’s document laid out similar goals: “Restructure pay scale to increase base salaries for new hires . . . Abolish seniority as a factor in all personnel decisions and incentivize the removal of poor performers.” He also wrote that he wanted the best teachers to receive bonuses of up to fifty percent of their salary, the kind of incentives paid to top workers in Silicon Valley.

We argue that performance is sustained not by offering customers the perfect choice but by offering them the easy one. So even if a value proposition is what first attracted them, it is not necessarily what keeps them coming.

Salary increases in terms of percentage are too close between the top performers and those who are not. There’s not enough differentiation in bonus, or in stock options, or in stock grants. Leaders need the confidence to explain to a direct report why he got a lower than expected reward. A good leader ensures that the organization makes these distinctions and that they become a way of life, down throughout the organization. Otherwise people think they’re involved in socialism. That isn’t what you want when you strive for a culture of execution. You have to make it clear to everybody that rewards and respect are based on performance. In chapter 4, we’ll explain why so many companies don’t reward the doers, and how those that execute do.

Strategy usually begins with an assessment of your industry. Your choice of strategic style should begin there as well. Although many industry factors will play into the strategy you actually formulate, you can narrow down your options by considering just two critical factors: predictability (How far into the future and how accurately can you confidently forecast demand, corporate performance, competitive dynamics, and market expectations?) and malleability (To what extent can you or your competitors influence those factors?).

This insight prompted Lafley to switch the bonus metric from TSR to something called operating TSR, which is based on a combination of three real operating performance measures—sales growth, profit margin improvement, and increase in capital efficiency. His belief was that if P&G satisfied its customers, operating TSR would increase, and the stock price would take care of itself over the long term. Moreover, operating TSR is a number that P&G’s business unit presidents can truly influence, unlike the market-based TSR number.

But “as long as the task involved only mechanical skill, bonuses worked as they would be expected: the higher the pay, the better the performance.”2

John sat down and looked at the ceiling. “So, they can’t work it out because . . .” “Because you’re sending two very different messages about what matters most.” At the highest level, the words were clear: “Get the new product to market quickly.” But one of the reasons the company struggled to get there was that their compensation, recognition, and reward systems weren’t aligned with the strategic goal. The sales team’s compensation and bonus structure required time from engineering to solve customer issues with the older products. Time they couldn’t get until they yelled. Misaligned systems undermined everyone’s progress and resolve. Once they realigned their compensation and performance evaluation systems to support the strategic goal, everyone could work together.

1. If you’re starting a new sales organization, do not offer traditional monthly cash commissions. It’s best to have everyone in your company compensated in the same way—so offer salespeople a competitive salary and sales performance bonuses of additional stock options that vest over time. Stock provides a built-in incentive to stick around and invest in long-term customers who are good for the business. 2. If you’re trying to transition to a relationship-driven culture, you may not be able to kill traditional commissions right away. In that case, any stock or cash (stock is still preferable) that you give as a commission should vest over time. Pay 10–15 percent of the commission at first, then another tranche in a few months, then another a few months after that, etc. If the customer leaves, the salesperson loses the remainder of their commission. 3. Every sale should be a team sale. So if you have a customer success team (the team that actually delivers, sets up, and maintains whatever is sold to the customer), then it should sign off on every deal. Sales and customer success should be under one leader, in the same silo, being compensated in the same way. In this setup, sales can’t just throw a customer over the fence and never think about them again. If there’s no customer success team, then sales should work very closely with customer support, operations, or manufacturing—create a board of people to approve each commitment.

A teacher or administrator who wants to keep their job or earn a bonus has an incentive to get rid of students who are dragging down test scores through low performance or behaviors that disrupt the performances of other students

I don’t buy the idea that if you dangle cash in front of your high-performing employees, they try harder. High performers naturally want to succeed and will devote all resources toward doing so whether they have a bonus hanging in front of their nose or not. I love this quote from former chief executive of Deutsche Bank John Cryan: “I have no idea why I was offered a contract with a bonus in it because I promise you I will not work any harder or any less hard in any year, in any day because someone is going to pay me more or less.” Any executive worth her paycheck would say the same.

By avoiding pay-per-performance bonuses you can offer higher base salaries and retain your highly motivated employees. All this increases talent density. But nothing increases talent density more than paying people high salaries and increasing them over time to assure they remain top of market.

The methods used by most companies to compensate employees are not ideal for a creative, high-talent-density workforce. Divide your workforce into creative and operational employees. Pay the creative workers top of market. This may mean hiring one exceptional individual instead of ten or more adequate people. Don’t pay performance-based bonuses. Put these resources into salary instead. Teach employees to develop their networks and to invest time in getting to know their own—and their teams’—market value on an ongoing basis. This might mean taking calls from recruiters or even going to interviews at other companies. Adjust salaries accordingly.

A tool, not a weapon. The OKR system, Grove wrote, “is meant to pace a person—to put a stopwatch in his own hand so he can gauge his own performance. It is not a legal document upon which to base a performance review.” To encourage risk taking and prevent sandbagging, OKRs and bonuses are best kept separate. (See chapter 15, “Continuous Performance Management: OKRs and CFRs.”)

The engine is never your salary; the engine is the employer's pressing business needs. The next car back has your responsibilities that will address the company's needs and goals. The next car back is filled with your differentiators that address the employer's pressing business needs. The next car back might be a bet on how your unique capabilities will address the company's needs and the performance that you will achieve. The next car back is filled with other differentiators and additional Storytelling Issues. The caboose is your salary and annual bonus. The caboose is always attached to the train and rides along, but it comes at the end of the discussion, not the beginning of the conversation.

We’ve looked at over a dozen policies and processes that most companies have but that we don’t have at Netflix. These include: Vacation Policies Decision-Making Approvals Expense Policies Performance Improvement Plans Approval Processes Raise Pools Key Performance Indicators Management by Objective Travel Policies Decision Making by Committee Contract Sign-Offs Salary Bands Pay Grades Pay-Per-Performance Bonuses These are all ways of controlling people rather than inspiring them.

Here was the deal Sullivan pioneered: New managers would invest $25,000 and commit to staying for five years. Outback would take the first three years to train them to run a restaurant, paying a competitive wage. During the last two years, the new managers would get to run a restaurant on their own. If they hit certain performance milestones by the fifth year, they would get a $100,000 bonus — a 4x return on their investment — which would vest over the next four years. If they signed on to stay at the same restaurant another five years, they would receive the $100,000 in one lump sum, plus $500,000 worth of stock that would vest over the next five years.

Pursuit Rampage: High-Speed Chaos on the Streets Unleash Mayhem in the Ultimate Police Chase Game Pursuit Rampage is a high-octane action game where speed, destruction, and chaos come together in a thrilling urban chase. In this fast-paced browser game, players take control of a getaway vehicle, racing through city streets while dodging relentless police units and causing as much destruction as possible. The game offers an intense blend of arcade-style driving and adrenaline-pumping pursuit action. Fast Cars, Explosive Gameplay The core of Pursuit Rampage is simple: outrun the cops and survive for as long as you can. But surviving is not easy. Police vehicles will ram, trap, and outnumber you at every corner. You’ll need sharp reflexes, quick thinking, and aggressive driving to keep going. Smash through traffic, drift around corners, and leave destruction in your wake as you fight to stay ahead. Power-ups and bonuses appear along the way to help you extend your rampage. These might include speed boosts, armor upgrades, or weapons that let you fight back against the incoming law enforcement vehicles. The more chaos you cause, the higher your score—and the bigger the challenge becomes. Stunning Urban Environments Pursuit Rampage features colorful, stylized city environments filled with traffic, roadblocks, and interactive elements. From narrow alleys to wide highways, every part of the map is designed to keep the action flowing. The visuals are crisp, vibrant, and optimized for performance on browsers, allowing players to dive into the chase without needing to download anything. The dynamic camera angles and responsive controls enhance the sense of speed and urgency, making each police chase feel like a scene from an action movie. Built for Instant Play One of the biggest strengths of Pursuit Rampage is its accessibility. The game is built for browser play, meaning there’s no need to download or install anything. Just load the game and start driving. It runs smoothly on both desktop and mobile devices, making it perfect for quick gaming sessions or longer playthroughs. The intuitive controls ensure that anyone can pick up and play immediately, while the increasing difficulty keeps the gameplay challenging and addictive. Perfect for Action Game Fans If you enjoy games that combine speed, destruction, and endless challenges, Pursuit Rampage is for you. It takes inspiration from classics like car chase arcade games and brings them into a modern, fast-paced browser format. Each run offers new obstacles, more aggressive enemies, and more explosive moments. Whether you’re competing for a high score, chasing achievements, or just blowing off steam with some high-speed mayhem, Pursuit Rampage delivers nonstop entertainment. Conclusion Pursuit Rampage is more than just a car chase game—it’s a wild, chaotic experience that rewards bold driving and quick reflexes. With smooth browser-based performance, explosive action, and endless replay value, it’s an ideal choice for players who love high-speed thrills and urban destruction. Jump in, start your engine, and see how long you can outrun the law.

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Here is a sample of the decisions managers at Google cannot make unilaterally: Whom to hire Whom to fire How someone’s performance is rated How much of a salary increase, bonus, or stock grant to give someone Who is selected to win an award for great management Whom to promote

At home, Rockefeller created a make-believe market economy, calling Cettie the “general manager” and requiring the children to keep careful account books.16They earned pocket money by performing chores and received two cents for killing flies, ten cents for sharpening pencils, five cents per hour for practicing their musical instruments, and a dollar for repairing vases. They were given two cents per day for abstaining from candy and a dime bonus for each consecutive day of abstinence. Each toiled in a separate patch of the vegetable garden, earning a penny for every ten weeds they pulled up. John Jr. got fifteen cents an hour for chopping wood and ten cents per day for superintending paths. Rockefeller took pride in training his children as miniature household workers. Years later, riding on a train with his thirteen-year-old daughter, he told a traveling companion, “This little girl is earning money already. You never could imagine how she does it. I have learned what my gas bills should average when the gas is managed with care, and I have told her that she can have for pin money all that she will save every month on this amount, so she goes around every night and keeps the gas turned down where it is not needed.

1 = Very important. Do this at once. 2 = Worth doing but takes more time. Start planning it. 3 = Yes and no. Depends on how it’s done. 4 = Not very important. May even be a waste of effort. 5 = No! Don’t do this. Fill in those numbers before you read further, and take your time. This is not a simple situation, and solving it is a complicated undertaking. Possible Actions to Take ____ Explain the changes again in a carefully written memo. ____ Figure out exactly how individuals’ behavior and attitudes will have to change to make teams work. ____ Analyze who stands to lose something under the new system. ____ Redo the compensation system to reward compliance with the changes. ____ “Sell” the problem that is the reason for the change. ____ Bring in a motivational speaker to give employees a powerful talk about teamwork. ____ Design temporary systems to contain the confusion during the cutover from the old way to the new. ____ Use the interim between the old system and the new to improve the way in which services are delivered by the unit—and, where appropriate, create new services. ____ Change the spatial arrangements so that the cubicles are separated only by glass or low partitions. ____ Put team members in contact with disgruntled clients, either by phone or in person. Let them see the problem firsthand. ____ Appoint a “change manager” to be responsible for seeing that the changes go smoothly. ____ Give everyone a badge with a new “teamwork” logo on it. ____ Break the change into smaller stages. Combine the firsts and seconds, then add the thirds later. Change the managers into coordinators last. ____ Talk to individuals. Ask what kinds of problems they have with “teaming.” ____ Change the spatial arrangements from individual cubicles to group spaces. ____ Pull the best people in the unit together as a model team to show everyone else how to do it. ____ Give everyone a training seminar on how to work as a team. ____ Reorganize the general manager’s staff as a team and reconceive the GM’s job as that of a coordinator. ____ Send team representatives to visit other organizations where service teams operate successfully. ____ Turn the whole thing over to the individual contributors as a group and ask them to come up with a plan to change over to teams. ____ Scrap the plan and find one that is less disruptive. If that one doesn’t work, try another. Even if it takes a dozen plans, don’t give up. ____ Tell them to stop dragging their feet or they’ll face disciplinary action. ____ Give bonuses to the first team to process 100 client calls in the new way. ____ Give everyone a copy of the new organization chart. ____ Start holding regular team meetings. ____ Change the annual individual targets to team targets, and adjust bonuses to reward team performance. ____ Talk about transition and what it does to people. Give coordinators a seminar on how to manage people in transition. There are no correct answers in this list, but over time I’ve

THE PRAISED GENERATION HITS THE WORKFORCE Are we going to have a problem finding leaders in the future? You can’t pick up a magazine or turn on the radio without hearing about the problem of praise in the workplace. We could have seen it coming. We’ve talked about all the well-meaning parents who’ve tried to boost their children’s self-esteem by telling them how smart and talented they are. And we’ve talked about all the negative effects of this kind of praise. Well, these children of praise have now entered the workforce, and sure enough, many can’t function without getting a sticker for their every move. Instead of yearly bonuses, some companies are giving quarterly or even monthly bonuses. Instead of employee of the month, it’s the employee of the day. Companies are calling in consultants to teach them how best to lavish rewards on this overpraised generation. We now have a workforce full of people who need constant reassurance and can’t take criticism. Not a recipe for success in business, where taking on challenges, showing persistence, and admitting and correcting mistakes are essential. Why are businesses perpetuating the problem? Why are they continuing the same misguided practices of the overpraising parents, and paying money to consultants to show them how to do it? Maybe we need to step back from this problem and take another perspective. If the wrong kinds of praise lead kids down the path of entitlement, dependence, and fragility, maybe the right kinds of praise can lead them down the path of hard work and greater hardiness. We have shown in our research that with the right kinds of feedback even adults can be motivated to choose challenging tasks and confront their mistakes. What would this feedback look or sound like in the workplace? Instead of just giving employees an award for the smartest idea or praise for a brilliant performance, they would get praise for taking initiative, for seeing a difficult task through, for struggling and learning something new, for being undaunted by a setback, or for being open to and acting on criticism. Maybe it could be praise for not needing constant praise! Through a skewed sense of how to love their children, many parents in the ’90s (and, unfortunately, many parents of the ’00s) abdicated their responsibility. Although corporations are not usually in the business of picking up where parents left off, they may need to this time. If businesses don’t play a role in developing a more mature and growth-minded workforce, where will the leaders of the future come from?

Traditional performance management systems make a big mistake. They combine two things that should be completely separate: performance evaluation and people development. Evaluation is necessary to distribute finite resources, like salary increases or bonus dollars. Development is just as necessary so people grow and improve.” 121 If you want people to grow, don’t have those two conversations at the same time. Make development a constant back-and-forth between you and your team members, rather than a year-end surprise.

As Prasad Setty explains, “Traditional performance management systems make a big mistake. They combine two things that should be completely separate: performance evaluation and people development. Evaluation is necessary to distribute finite resources, like salary increases or bonus dollars. Development is just as necessary so people grow and improve.

This is where we find the classic rookie mistake. That is, we confuse achievement and process. At the beginning, we are quick to focus on externals, especially the carrots that are dangled before us as incentives. If we practice long and train hard, we’ll get the award, the attention, the recognition, the bonus, the lifestyle or the security. But as we mature, we find ourselves wondering if maybe we had it all wrong. The thing that really satisfied us was not the incentive, but the engagement.

This is the reason we like to be given a clear goal to achieve to receive a bonus instead of being given some amorphous instructions. It’s not very motivating or helpful to be told that we will receive a performance bonus if we achieve “more.” How much more? Give us something specific to set our sights on, something we can measure our progress toward, and we are more likely to achieve it.

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