Dr. Kilian Wawoe is affiliated with the Free University and an expert in the field of remuneration. He conducted research into bonuses within large organizations and studied numerous collective labor agreements. His conclusion was clear: the bonus does not work anymore, it does not give the result that the companies want. In fact, many companies do not even know why they give bonuses.

What about bonuses

"Bonuses can have a positive effect" says Wawoe, but only for piecework, 'peeling bulbs' for example. The idea of bonuses originated in a steel mill, where it was directly measurable how much work an employee performed in a day. Kilian explains why this will not apply to you as a listener: "90% of listeners will not be in a job that can be measured so easily," therefore there is always a sense of unfairness. The idea that it's unfair that the neighbor is getting more than you. But there is also another side: "the salary should be in order, but should provide more of a peaceful basis." So bonuses are not part of that, even in banks or other financial sectors where bonuses are popular.

And that healthcare bonus then, that's a great signal, isn't it?

All healthcare employees will receive 1,000 euros net, as a bonus for their efforts in the corona crisis. "The signal is good, and I also think that a lot of care workers really deserve it" explains Kilian. But there is a problem here too: there are also many care workers who have had a quieter time, or who have worked normally. This immediately leads to so much discussion that the fun quickly evaporates. On top of that, a bonus has a very short positive effect, Kilian makes you think back to your first salary: "that was fun, but you probably won't remember anything about your second salary". How then? You can hear it in the podcast

Links

The previous podcast with Kilian Wawoe about working from home

More about Kilian Wawoe

Kilian Wawoe in the University of the Netherlands on the 'neighbor effect'

Contact

Do you have questions or input? Please contact Wendy van Ierschot at wendy@viepeople.com.

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