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British employees are amongst the most envious in the world, with one-third thinking that the bonuses their colleagues receive are unjustified.
A study by CIMA reports that over one-third of finance professionals believe that their co-workers did nothing to receive bonuses.
What is more, 62% of those surveyed strongly believe that unjustified payouts are the source of resentment in the office, undermining the team spirit.
The strongest anti-bonus sentiment is found in the North East with 97% of those surveyed being jealous about payments of bonuses to co-workers who in their belief did nothing to earn extra money.
Critics claim that bonus system might be actually completely the opposite of productive as it encourages short-term thinking amongst executives and leads to them concentrating on one small area of their job rather than then on overall picture, which consequently hurts their performance.
CIMA advises linking bonus to a long-term performance and the business’s final results rather than to short-term metrics such as revenue.
The vice president of external affairs at CIMA Tony Manwaring commented the following: “Current schemes often only focus on ‘hard indicators’ such as short-term revenue, but they should also seek to reward evidence the employee is helping the organisation plan and build for the long term.”
In banks, EU rules limited bonuses to the same level as salaries, unless, of course, shareholders are willing to double the salaries. British regulators are not in favour of this rule, however, arguing that in some financial companies payouts are an effective way to separate payouts from performance, which allows to rise bonuses in good years but also cut costs in bad years.