The Choices Worth Having

How people make decisions, and how they should make decisions.

Why Bonuses Are Bad

We shouldn't be paying people bonuses when they do the right thing. We want a society in which people do the right thing because it's the right thing. Yesterday, President Obama called on us to be hopeful and virtuous. "Virtue" is an old-fashioned word, but Obama evoked it because it is part of our national heritage and because it is "true."   Read More

Not Quite

Barry,

I see exactly what you mean, but I dont' think it is so simple. This is essentially where communism fails. You're counting on people to do the right thing, but they don't. If someone is given a high salary regardless of their daily 'performance', they simply won't work as hard. I think being more selective about bonuses could help the issue but to simply raise salary would bring about a new problem.

Bonuses

Alex is right that there is a risk that people will underperform without financial incentives. This risk we know about. The risk we have ignored as a society is that people will do the wrong things under the influence of financial incentives. This risk is to a large degree what has brought the U.S.to the brink of financial ruin. And I don't think people should be paid "regardless of their performance." If they don't do the job, they shouldn't keep the job. We DO have to count on people to want to do the right thing, and out task is to hire such people and nurture their motivation. There are no guarantees, but I don't think there's really a viable alternative.

I very nuch agree with you.

I very nuch agree with you. Basically, people want to do the right thing. But a bonus can blind this vision and lead to what in my country is known as a "grabbing culture". I can see the point of the other commentators, but still think the bonus treatment of employees is the worst of the alternative. Namely pay a good salary for a demanding job.

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Barry Schwartz is the Dorwin Cartwright Professor of Social Theory and Social Action at Swarthmore College.

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