Leadership today – Bosch abolishes individual bonuses!

Bosch plans to end individual bonuses (Stuttgarter Nachrichten, 19 Sep 2015)—CEO Denner calls them demotivating; company-wide premium instead. I use this to outline incentive systems: typical bonus structure (individual, unit, strategy), goals attraction/motivation/retention. Studies: bonuses weak for employer brand; attract money-focused staff; performance pay mainly hits willingness, not capability or opportunity; crowds out intrinsic motives (Weibel/Rost/Osterloh 2007). Extrinsic pay signals distrust. Retention needs trust culture and meaningful work (tit for tat). Conclusion diagram: individual bonuses weaken the firm long-term.