If you have been reading my column for a while, you have read my comments on bonuses. Contrary to what you might think, I am not totally opposed to them. However, for every good bonus system I encounter; I see 100 that ultimately must be dismantled.
Rewarding people with performance pay is a simple theory but not so easy to practice. Employee compensation is a complex subject. Company culture, regional differences, trade practices and many other factors will impact what is the best compensation approach for your company.