United Airlines sent a memo to employees yesterday telling them they would no longer receive their quarterly bonuses of up to $300.
Instead when United hits at least one of four performance metrics they all get entered in a lottery.
As we look to continue improving, we took a step back and decided to replace the quarterly operational bonus and perfect attendance programs with an exciting new rewards program called ‘core4 Score Rewards’
These are rewards for performance of the whole team, but most employees won’t receive anything anymore. A few employees will receive a lot. In total simple back of the envelope math suggests the total cost to the airline will be a small fraction of bonuses. And that means the expected value for any individual employee is far lower.
The prizes are
a Cadillac Eldorado and a set of steak knives “cash ranging from $2,000 to $40,000,” ten Mercedes Benzes, “vacation packages, and a grand of prize of $100,000.”
Here’s internal video of Scott Kirby announcing the new compensation contest to employees, smuggled out and leaked at great risk.
United believes replacing quarterly bonuses for employees of up to $300 with a reaping will “build excitement and a sense of accomplishment as we continue to set all-time operational records that result in an experience that our customers value.”