Do Bonuses Matter?

How important is handing out bonuses for an organization to become and stay successful for a longer period of time?

André de Waal, Associate Professor in the Maastricht School of Management, investigates in his article “Bonuses Don’t Matter . . . in a High-Performance Organization,” published in the May/June 2012 issue of Compensation & Benefits Review. To see the Table of Contents, click here.

The abstract:

Ever since the financial scandals that rocked the business world and the worldwide financial crisis that followed, the debate on the effects of bonuses and the role of reward systems has divided academics and practitioners alike. On one side are the proponents of bonuses, who state that monetary rewards increase productivity and organizational performance. On the other side are the opponents, who state that bonuses create higher pay inequality with as result greater manager and employee turnover, with less than desirable long-term effects. In the polemic between proponents and opponents, a key question regarding bonuses is often overlooked: How important is handing out bonuses for an organization to become and stay successful for a longer period of time? This question can be answered by studying the results of research into the characteristics of high-performance organizations.

Read the complete article in Compensation & Benefits Review, and click here to sign up for e-alerts and receive up-to-date analyses and information on salary and wage trends, labor markets, pay plans, incentive compensation, legal compliance, retirement programs, and health care benefits.

This entry was posted in Compensation and Benefits, Performance by Cynthia Nalevanko, Editor, Management INK. Bookmark the permalink.

About Cynthia Nalevanko, Editor, Management INK

Founded in 1965, SAGE is the world’s leading independent academic and professional publisher. Known for our commitment to quality and innovation, SAGE has helped inform and educate a global community of scholars, practitioners, researchers, and students across a broad range of subject areas. With over 900 employees globally from principal offices in Los Angeles, London, New Delhi, Singapore, and Washington DC, our publishing programme includes more than 560 journals and over 800 books, reference works and databases a year in business, humanities, social sciences, science, technology and medicine. Believing passionately that engaged scholarship lies at the heart of any healthy society and that education is intrinsically valuable, SAGE aims to be the world’s leading independent academic and professional publisher. This means playing a creative role in society by disseminating teaching and research on a global scale, the cornerstones of which are good, long-term relationships, a focus on our markets, and an ability to combine quality and innovation. Leading authors, editors and societies should feel that SAGE is their natural home: we believe in meeting the range of their needs, and in publishing the best of their work. We are a growing company, and our financial success comes from thinking creatively about our markets and actively responding to the needs of our customers.

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