Bonuses
topic on 2 shows · 3 statements across 2 episodes
the Knowledge Project 
My First Million
3 statements about Bonuses, every show
Parr: McKinsey study shows 105% bonus targets outperform 90% targets
“I was reading this McKenzie study,
Where they said you actually should give bonuses based on a 105% performance, not just 90% performance.
And research shows that if you over attain to in order to get a bonus, people tend to do that versus the other way around…”
Parrish: Annual bonuses are largely ineffective and distort employee effort timing
“I think this is one of the reasons bonuses are largely ineffective either. They're, Not material for the vast majority of people, and they happen once a year, and so you tend to get feedback once a year, and you know, in those three months before you get your …”
Su'a: Approaching a bonus triggers a performance-harming bias toward action
“I think we have a bias towards action. I think they're really, really an action bias as opposed to, hey, just keep doing what you're doing. Trust what you're doing was right and trust that the, that your process will yield the results that you're looking for a…”