100-Percent Bonuses Mean High Pay -- Plus Low Labor Costs

Article explains a statement that ?100-Percent Bonuses Mean High Pay Plus, Low Labor Costs.? It explains a case of Nucor, which pays much lower base wages, then uses weekly bonus cash payouts as an advantage. The company pays much lower base wages sometimes half of what the competition pays hourly workers then uses weekly bonus cash payouts as an incentive. The secret to motivating people is money. Expert?s views are ?If you give a bonus to somebody of 15 percent, of course they like it, or 20 percent, even 25 percent, of course they love it. However, if one gives them a bonus of 100 percent, he can get their attention big-time, and when they start seeing 150 percent bonus or 160 percent bonus, they are focused on that bonus. And when they know it's not going to be changed, like ratcheting up the base when they really start producing or putting a ceiling on it ... they catch fire." Read the article to get the details.

Provided by: Crain Communications Topic: Software Date Added: Jun 2001 Format: HTML

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