It has been my experience in all walks of life that the DOLE is the greatest incentive to working that little bit harder than your fellow workers. From the top to the bottom the fear of the sack requires the same respect believe me.
Having just googled her I can see she has got industrial experience in the past....Having just read up on her it appears she jumped ship and joined the world of Academia. I often wonder why people do this . perhaps the Accountants she worked for in the past did not incentivise her enough. Ha ha
Morning Jings. Dare I say this sounds like the work from an academic with no industrial experience. a bit like Dr Cable really. we all met them at Uni all very good at explaining what should happen according to the text book. my experiences with clients says the complete opposite happens. if the staff are well incentivised you get the best out of them. if you pay them a basic salary with no incentives they are quite happy to plod along doing as little as possible. and this is what happens with a lot of public sector workers. they get paid the same no matter how they do their work . there is no incentive for them to work harder or innovate.
Morning ... Just to keep the pot boiling ....From an article by Dr Ruth bender on the pro's and con's of bonuses and bankers remuneration . Bonuses don’t work
Bonuses don’t work. Oh, they work very nicely to incentivise low-interest, repetitive tasks. But there is research evidence to suggest that they don’t produce the desired results for more complex activities. Indeed, experiments have shown that individuals who are ‘motivated’ by the prospect of financial reward actually do worse at complex cognitive tasks than those without the benefit of an incentive. And top-level banking is a complex cognitive task, in which risk management is fundamental. Given that one reason for the collapse of the financial system was that its participants had misunderstood or wilfully ignored the level of risk inherent in the plethora of financial instruments they were creating, reconstituting the same reward system that contributed to this failure may not be the most intelligent move.
I agree with you that not everyone is motivated by money. However we are not talking about everyone. I am talking about those at the top of their game who's motivation is money. I would much prefer to pay someone a £1m bonus based on the wealth they create than £1m salary and be useless. However the use of the word bonus seems to grate certain people and I just feel that is very narrow minded. the last person who I would want to tell me what I am worth or what I should be paid is a politician particularly the Cables of this world who have no business experience. As regards would somebody move, of course they would if they were at the top of the game. Where would they go , well for a start Barclays where there is less political interference. The industry know who are the best in the game and they would have no difficulty in moving and this can only be a detriment to the RBS. if a State bank is what is wanted then we should go ahead and nationalise it and leave it to be run by Captain Mannering type Civil Servants. If this was to happen ,you thought the COOP was bad you ain't seen nothing yet.
You may well be right and I don't doubt that all staff go to work in the first instance for money to fulfill basic needs etc I suspect though that there is a point where money is not the sole motivator in life for every one and that this point is reached before Bill Gates levels of wealth. In ideal world people motivated by bonuses would recieve an appropriate bonus for correct performance and the correct people would get bonuses .Although as evidenced in Lloyds recently bonuses themselves can cause problems
It is getting it right that is tricky and I do think that any body that is mainly bonus driven will have been able to see that bonuses would be an issue at RBS and already left - if they could find a better paying employer.In which case the bonuses will be needed to attract from other employers and as I don't think employees would go through upheaval of job change for nothing, bonus would have to be higher than they are getting elsewhere
I am in total agreement that in the long run overall package must be market place competitive but whether it is right for the bank or not the tax payer, without whom none of the staff would have a job,is not going to agree to large bonuses. Again rightly or wrongly the government is not going to risk upsetting voters this close to an election - unless I am very mistaken. In which case if there is danger of best staff walking RBS will need another way to motivate them - if there is one.
Without sounding mercenary I do think the best staff are driven by money unless you are in the clergy or a missionary. Strictly It is what money buys is the motivation. It allows you to get the best for your family. Once you have everything you could possibly want the monetary gain is no longer the number one target and you can become. Bill Gates and devote. Significant amount of time and resources to giving back I think the flaws in the arguments against giving any bonuses at all in RBS because of past mistakes is it is tarring everyone with the same brush.In my opinion if certain INDIVIDUALS are vital to the recovery of the bank they should be paid accordingly.Putting some artificial bonus cap on ALL staff on moral or political grounds is not in the best interest of the bank, it's shareholders or the taxpayer going forward.
I agree you do have to pay a fair rate for the job but I wonder if all of the so called best staff are driven solely by cash benefits of the job. Worth remembering that there were no bonus caps when the share price dropped from six pound to ten pence I think it was 2008 or 2009 or to adjust with like for like sixty pounds to one pound.
I think the Bank has to accept reality it is mainly owned by UK tax payers who struggle to understand why large bonuses are justified with a loss of eight billion pounds. Profits albeit modest need to be made a dividend paid and the company not be owned by the tax payers then large bonuses can be paid again - I am not clever enough to know if this is a good thing sometimes wonder if better to have sensibly paid loyal staff who won't jump ship at the hint of a pay rise.Has anyone heard of top performers deserting due to the bonus cap?
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