“Thanks For The 2 Years’ Free Work”: Greedy Execs Take A Project That No One Pays For, Take Away The Bonuses From The Team
Yearly bonuses can be a huge motivation for your performance at work, especially when you feel like you went above and beyond in your job.
This story from a person who worked for an unnamed company shows what happens when you are expected to pay for the mistakes your management makes.
“Two years ago my company announced that we would be starting a very lucrative partnership with Saudi Arabia,” the Redditor explained. However, it soon became apparent that the work was much harder than anticipated.
Performance-wise, everything was done top-notch, but the managers soon realized there was a gaping hole in the Saudi project that would affect every single staff member.
A company cancels performance bonuses for every staff member after the executive managers failed to sign a contract for an exhausting 2-year-long project
Image credits: Yan Krukau (not the actual photo)
Image credits: Kampus Production (not the actual photo)
Image credits: rampantfirefly (not the actual photo)
“Canceling employee bonuses due to mistakes of senior management punishes employees who aren’t responsible for it,” the expert says
Bored Panda reached out to Dr. Gleb Tsipursky, the CEO of Disaster Avoidance Experts and best-selling author of seven books, including a global bestseller Never Go With Your Gut: How Pioneering Leaders Make the Best Decisions and Avoid Business Disasters.
“If the company’s financial health is at risk due to the failed contract, it may be necessary to cut costs to ensure the company’s survival,” Dr. Gleb commented.
However, he added, “many may argue that canceling employee bonuses due to the mistakes of senior management is unjust, as it punishes employees who are not responsible for the situation.”
“It would be especially inappropriate if executive bonuses weren’t canceled and if no executive was demoted or resigned”
“It can lead to harming employee-boss relationships and a decline in employee morale, motivation, and even result in talented employees leaving the company.”
Moreover, in this case, Dr. Gleb argues that “it would be especially inappropriate and a sign of bad decision-making if executive bonuses weren’t canceled and if no executive was demoted or resigned due to the incompetence shown by the leadership.”
And this is how people reacted to this story
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I'm dumbfounded by the "if they see our culture maybe they'll change theirs" attitude. I'd say the project was doomed from that point on. And the execs who effed up will be just fine, I'm sure.
I've worked contacts in Saudi Arabia. It's much worse than you think. There are countries in that region that I enjoyed spending time in, but yeah, Saudi Arabia wasn't one of them.
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I’m not surprised there’s no bonus. Since the company didn’t get paid on the contract, they wrote the whole thing off as a loss which meant the company’s profitability took a hit which probably had positive tax consequences. These type of bonuses are structured on profitability so no profit, no bonus. Certain executives, on the other hand, often have a bonus structure unrelated to profitability. But the moral of the story is never do work without a signed contract because you are basically volunteering.
I'm dumbfounded by the "if they see our culture maybe they'll change theirs" attitude. I'd say the project was doomed from that point on. And the execs who effed up will be just fine, I'm sure.
I've worked contacts in Saudi Arabia. It's much worse than you think. There are countries in that region that I enjoyed spending time in, but yeah, Saudi Arabia wasn't one of them.
Load More Replies... I’m not surprised there’s no bonus. Since the company didn’t get paid on the contract, they wrote the whole thing off as a loss which meant the company’s profitability took a hit which probably had positive tax consequences. These type of bonuses are structured on profitability so no profit, no bonus. Certain executives, on the other hand, often have a bonus structure unrelated to profitability. But the moral of the story is never do work without a signed contract because you are basically volunteering.
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