I once worked for a company that had 5 metrics in their annual bonus plan. That was what they said.

Beneath those 5 metrics were categories: (1) Company, (2) Business Unit, and (3) Individual Employee.

In each category there were additional metrics. So, I counted how many metrics an employee might have to focus on for the year.

Company = 5 metrics (e.g., financial, customer, internal process, safety, and ESG)
Business Unit = 5 metrics; but each of the 5 had 3 or more metrics so more than 15 metrics was not unusual; There were more than 4 business units.
Individual Employee = 10 plus metrics were not uncommon

And by Career Level (Executive, Management, and Individual Contributor) the categories above were weighted differently. Example: Executives had a 50% weight on Company metrics, 30% on BU, and 20% on Individual.

Oh, and some employees were assigned to more than one BU.

Yes, the calculations of the bonus payouts were complex. I liked aspects of the incentive design, but it was not easy to explain.

Eventually I spoke up. I disagreed and recommended that we simplify the bonus plan and metrics. Fast forward a few months and I was laid off. (Note this wasn’t the only time I spoke up about things that I thought needed to be changed.)

“An environment that is not safe to disagree in is not an environment focused on growth. It is an environment focused on control.” —Author Unknown

Do I regret speaking up? No. But know that when you are unable to influence the decisions you are expected to influence, that is a red flag.

Don’t collect red flags. Update your resume and optimize your LinkedIn profile. Or start a business. You just may find yourself happier than you could ever imagine.

#disagreements #trust #leadership #humanresources #incentives #rewards #humanresources #bonus