In a peculiar situation at Google’s self driving car subsidiary, employees have been leaving because their bonus packages are actually paying them TOO MUCH.
The subsidiary, which runs as a standalone business called Waymo, paid out massive bonuses based on the projects value and income generated, amplified by it’s success these bonuses spiralled out of control. It is a warning to employers to structure their bonus system in a sustainable way and get the balance of their rewards system correct.
Although the precise numbers being paid out to the members has not been confirmed to any financial news site, it was enough so that they felt they had the freedom to not worry about job security and they could now finance their own independent business ventures.
The bonuses ballooned as a result of a multiplier being applied to the awards system based on periodic valuations of each division of the company, it was not necessarily just the performance of the project that earned such substantial rewards.
Google have since gone on to re-evaluate the system but pay rates still remain high to stop their employees leaving, which would be likely to aid their competitors. As a multi-billion dollar company they can afford such pay structures but many smaller sized businesses would be wise to invest more economically.
For queries or advice regarding your companies bonus systems please contact High Performance consultancy on this website or through our numerous social media channels.
Link to article to full article on HR grapevine: https://www.hrgrapevine.com/content/article/news-2017-02-15-google-losing-employees-on-self-driving-car-unit-because-it-paid-them-too-much