Is this a good long-term yearly salary review policy? I prefer raises over bonuses because bonuses are quickly forgotten and a raise is a recurring reminder to do a good job.pic.twitter.com/Gl1jpPL3lS
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Is this a good long-term yearly salary review policy? I prefer raises over bonuses because bonuses are quickly forgotten and a raise is a recurring reminder to do a good job.pic.twitter.com/Gl1jpPL3lS
These guys found that tying to company performance resulted in lower overall satisfaction versus mostly personal performance:https://hbr.org/2017/03/research-how-incentive-pay-affects-employee-engagement-satisfaction-and-trust …
Cool, thanks. If I’m not mistaken, authors looked at company performance rewards vs individual. I’m suggesting a hybrid. They also only interviewed managers. Typically people who reach that level are more qualified on average and thusly favor individualistic reward systems.
Makes sense. Most of my orgs settled on 60/40 or 70/30 company/personal goals bonus schemes. Despite this study, it seems to work well! Good luck.
Thanks, I will need it. It really needs to be done on a case by case, year by year basis. Best not to say "we will always do 70/30" because if you're running out of cash, you need to do what you need to do. That said, fascinating that you've seen higher company work best.
I read a book called Made in Japan by the founder of Sony. The Japanese way of management and raises gave me a lot to think about. Increasing salaries solely by seniority creates a lot of cohesion and company loyalty. It has its downsides obviously, but its probably underrated.
Neat — I think that behavior contributes greatly to the types of industries where Japan Inc has thrived (autos for example) and failed (software).
The idea being that great software is often a great individual effort while autos and most physical products require much more team coordination?
I haven’t done business in Japan, so this is all reading second-hand.. The business culture there compliant and hierarchical. That helps you build safe, cheap great cars. Bad for software. You need experimentation and risk-taking at all levels of the org.
I've done some business in Japan. I think you're right. That said, I am more impressed with the risks a physical product company takes than a software company. Japanese have proven to be risk takers and innovators, though as of late, there are not so many examples.
It does seem like innovation has to happen top-down in Japan’s culture. (The Walkman was a top down product idea->implementation, for example.) And now it’s hard for people culturally or practically to become entrepreneurs there and lead top-down change in their own orgs maybe?
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