I think this is a creepy development, for several reasons:
1. It will make it more difficult for employees to budget, since they will not know what their pay will be.
2. Who will define the targets? The power to define targets will place enormous power in someone's hands. The only way to avoid a concentration of arbitrary power would be to have the targets be the subject of collective decision-making, whether through unions or through employee ownership.
3. Unless the target is shared and the bonus is awarded to a group that includes all the individuals whose work contributes to the accomplishment of a stated goal, the bonus system will tend to fragment efforts and discourage teamwork.
I think this kind of connection is not sufficiently discussed. Stress underlies a variety of medical conditions and contributes significantly to health care costs. Some part of the elevated health care bill in the US is attributable to anxiety about health insurance and health care- financial iatrogenesis!
Sandy
Santiago Leon
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