Tuesday, March 18, 2014

The pros and cons of bonuses

Incentives such as fuel mileage and safety bonuses can send drivers a message that their hard work and effort is notices, but some bonuses can incentivize drivers to make bad decisions.  Giving drivers an on time bonus could push drivers who have become fatigued to continue to driving.  Many companies that offer an on time bonus will not penalize drivers if they are late on deliveries due to fatigue, or for other reasons beyond the driver’s control.  If your company offers or is thinking about offering performance incentives, consider the adverse effects these might cause.  Performance bonuses should incentivize hard work not incentivize dangerous behavior. 

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