6. Why Xero got rid of cash bonuses
We didn’t do it well. And even if we did, would it be worth it?
“Once the task called for even
rudimentary cognitive skill a larger
reward led to poorer performance”
Federal Reserve Bank of Boston Working Paper, July 2005
7. What (I hope) will take its place
Bonuses from your mate not the man
“Results suggest that a minor adjustment to employee bonuses –
shifting the focus from the self to others – can produce measurable
benefits for employees and organizations”
Harvard Business School working paper, 2013
“It's great that the managers know who's super-effective and contributing
the most, but, quite frankly, we know better, so let us reward and
recognize our peers”
Greg Silva, IGN Entertainment
8. Solve as few problems as you can
as ‘management’. Use your talent
22. In Summary
What you should be thinking about...
● Culture is a big contributor to effectiveness. So work on it
● Culture is not HR’s problem to solve. It’s yours
● Ditch incentives that don’t work for talented people. Create better ones
● Solve as few problems as you can as ‘management’. Use your talent
● You wouldn’t do a retro yearly. Don’t do engagement surveys that way
23. Coding War Games
So where is your organisation? And what are you going to do about it?