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United Airlines Replaces Bonuses with a Lottery

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21–27 of 27 posts

Re: United Airlines Replaces Bonuses with a Lottery

#21

This was done to try and boost morale and make United a more caring airline? It looks like an attendance and compliance program in disguise. How could people at the top be so inept at such basic principles of human psychology? The only explanation is that Oscar Munoz is a complete sociopath and cares nothing about his employees, or company for that matter. Makes absolutely no sense at any level and will only lead to…

Relevant quote from the article:

>"I can't imagine driving the Mercedes into the employee lot while everyone around me that worked just as hard, or harder got nothing. I would feel like such a jerk. It's quite telling about the people who thought this up. I bet they would be gloating happily if they won." --Flight Attendant - Domestic

Re: United Airlines Replaces Bonuses with a Lottery

#22

Yes this is dumb. But how does the previous bonus based solely on company profit incentivize anyone? In the grand scheme of things, most individuals at a company have very little affect on the company profit and the affect of one person is so diffuse it's meaningless. I've never worked for a company that emphasizes perfect attendance, but my wife has. Why would any company want to encourage any employee to come to wo…

> Why would any company want to encourage any employee to come to work sick and maybe contagious?

I noticed such policies at some companies which had a very high sick leave percentage. Sometimes it's difficult to determine if someone is faking being sick. I guess one way of to try and solve that is giving people money. I hope nobody does this when the sick leave percentage is average due to mentioned working while sick is bad result.

Re: United Airlines Replaces Bonuses with a Lottery

#23
post #22

Yes this is dumb. But how does the previous bonus based solely on company profit incentivize anyone? In the grand scheme of things, most individuals at a company have very little affect on the company profit and the affect of one person is so diffuse it's meaningless. I've never worked for a company that emphasizes perfect attendance, but my wife has. Why would any company want to encourage any employee to come to wo…

> Why would any company want to encourage any employee to come to work sick and maybe contagious? I noticed such policies at some companies which had a very high sick leave percentage. Sometimes it's difficult to determine if someone is faking being sick. I guess one way of to try and solve that is giving people money. I hope nobody does this when the sick leave percentage is average due to mentioned working while si…

I use to think why have sick leave at all and just give everyone a PTO bucket. Instead of having 10 sick days and 10 vacation days, split it and give everyone 15 days PTO. It would give people more flexibility and management would have to worry about if someone was really sick.

But then there are still issues...

1. People come in sick to save their PTO and spread what they have if it's contagious.

2. It works well for most salaried employees. We can work from home, claim we are working even if we aren't being productive and catch up over the weekend or when we feel better (I don't see an ethical problem with that.) A lot of hourly jobs can't time or place shift like that.

3. Salaried employees, usually don't have to call in sick for a sick child (we work from home), or for doctors appointments. We can usually make our time up.

Re: United Airlines Replaces Bonuses with a Lottery

#24

It seems tailored for social media. "look at me I won". A lot of things are going this route. dumb.

This seems right out of the "Undercover Boss" playbook. With the cameras rolling, a lucky few get their college/student loans paid for and nice vacation, while the vast majority of employees get nothing.

Re: United Airlines Replaces Bonuses with a Lottery

#25
post #6

It seems tailored for social media. "look at me I won". A lot of things are going this route. dumb.

The execs probably hope to leverage irrationality around games of chance. This will provide net morale at a lower program cost. It's good that this innovation will be nipped in the bus before it spreads across corporate America.

This won't be the last time they try.

Re: United Airlines Replaces Bonuses with a Lottery

#26

Yes this is dumb. But how does the previous bonus based solely on company profit incentivize anyone? In the grand scheme of things, most individuals at a company have very little affect on the company profit and the affect of one person is so diffuse it's meaningless. I've never worked for a company that emphasizes perfect attendance, but my wife has. Why would any company want to encourage any employee to come to wo…

Because management can't manage.

We are engineers. So we think in terms of what you'd need to do, to achieve effectively statistical certainty that you'll be able to send a plane on it's way in almost all cases, while minimizing costs.

Such a process would involve a set of actions that you'd have to execute, as a management team, using a set of employees, so that everyone is in the correct place at the correct time, and the odds of anyone getting into trouble is minimal, and this gets planned out over time, optimized by a scheduling algorithm.

Then, if things go wrong, you simply re-run your algorithm to deal with the new situation and you do the best that can possibly be done. Of course, such a program is very hard to write.

The stories I've heard about management actually doing this are VERY few and VERY far between, and even then only about very specific things (and only things that would apply to multiple airlines, e.g. optimizing flight plans and fuel tanking). Instead, management layers simply threaten the layer below them into perfect attendance (which works for a while when employees are desperate for jobs) and when things inevitably go wrong they go into full panic mode and spend 50x what is really necessary to fix things. During such panics, even basic events seem to come as total surprises to management. For instance, there was a news message about a problem in Amsterdam Schiphol due to the weather. The problem was understandable, a re-frozen ice layer on the tarmac prevented safely taking off. 10 or so flights got canceled for one airline, for close to 2000 passengers, and there were 2 customer service representatives that, obviously, had a rather hard time dealing with this (there were 20+ doing ticketing for flights that weren't going to happen ... but using those ... nope). Management eventually provided hotel rooms for about 800 of those passengers and put beds in a terminal at around 6am for the rest. Lots of court cases are underway, and are unlikely to go well for the airline).

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