It’s an age old complaint that dates back to middle school. You’re assigned a group project and someone doesn’t do their share of the work. You finish the project, earn an “A” and that lagging group member benefits from your hard work. Now, some employers are addressing that problem by asking you to speak out.
According to the Wall Street Journal, executives are asking employees to identify and reward talent. Coffee & Power, an odd jobs start-up company, granted its employees 1,200 stock options each to distribute among co-workers in whatever way they choose. Individual bonuses were tied to how co-workers perceived each other’s work.
The idea relies on the premise that co-workers who are around each other constantly have much more insight into each other’s contribution than management who doesn’t see their day-to-day work. Allowing employees to vote on each other’s performances holds workers accountable to both management and their co-workers.
The idea has enticing appeal. Imagine its influence in the contracting industry, for example. You own a contracting firm and handle multiple work crews and project simultaneously. You can’t physically be at every job site to assess each worker’s performance. Relying on co-worker reports could give you accurate and detailed information that you wouldn’t see normally.
“It lets me reward people that management may not always recognize,” says Becky Neil, who works in marketing and product management. “This person who has a big title—maybe he didn’t actually contribute that much.”
Of course there is always a potential downside. Opponents argue that such a program could become popularity contests, or lead to hard feelings if someone isn’t recognized by the group. And of course careful restrictions must be implemented; workers cannot reward themselves or give options to company founders who already have sizable shares.
Regardless of your industry, or the size of your bonus, at Vreeland Insurance, our agents are trained specialists in all types of New Jersey business insurance and employee benefits. We cover a broad spectrum of businesses including contractors, property owners, distributors, manufacturers, and service providers. We know your business and your employees are important to you, that’s why we offer comprehensive business insurance plans to fit all your needs. Contact us today for more information.