Why do you believe bonuses can sometimes hurt performance?
Replied byRory Sutherland
Vice Chairman at Ogilvy UK
Niche: Marketing
Revenue: Estimated $2B+ USD/month
Location: London, United Kingdom
Started: 1948
Bonuses often require detailed measurement systems. Once people know exactly how they are being measured, they begin optimizing for those metrics. This can create unintended behavior where employees focus on what is measured instead of what actually matters to customers and the business.
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