The past few days discussion on the impact of bonuses has stirred quite a bit of email and posted comments.

Bonus systems are seductive for both the manager and the direct report. They sound great when times are good, the manager can relax accountability efforts (seduced by the good times). But when times are not so good, things turn sour.

It all comes back to the contract. As a manager, I expect my team members to do their best every day. In exchange, they can count on consistent fair compensation.

The last email I received posed this simple question. “What type of incentive program would you recommend over a bonus program?”

It’s a sucker punch question. Incentives hearken back to the carrot and stick. Incentives and bonuses create distrust and the circumstance for manipulation. Incentives and bonuses say “I do not trust you to do your best.”

So, what type of incentive program? It’s the incentive program of trust. Next week, we will talk about its elements, and how a manager has real influence in the areas of motivation and performance. Rather than just throwing money at it. -TF