Recently, I was providing counsel to a company who had a bonus plan that wasn’t producing desired results. Over time, as the business “flat-lined” in sales, the management continued earning healthy bonuses for just maintaining the status quo.
The company bonus plan had become an entitlement for these leaders, but provided little value for the company.
The challenge becomes how you begin taking away monies that has become an entitlement. Taking that benefit away can lead to poor morale, or even a mutiny of sorts.
Proverbs 22:3 teaches, “The prudent see danger and take refuge, but the simple keep going and pay the penalty.”
For the long-term good of the company, changes may need to be made, but it’s important to walk carefully in how you communicate changes to entitlements.
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