Paying for Performance, Benefits and Perks Article – Inc. Article

Back in 1999, Daman Products Co. implemented a bonus plan. The 65 manufacturing employees at the Mishawaka, Ind., maker of parts for hydraulic systems would be evaluated on these criteria: meeting production schedules; maintaining their machines; and reducing overtime, scrap, and shipping errors. Productivity surged, and some employees added as much as 15% to their paychecks.

Then the economy took an unexpected U-turn, and so did Daman’s sales, plunging some 20%. Forget about bonuses. The company went into survival mode, cutting about 20 jobs. And after just one year, Daman Products put its bonus program on indefinite hold.

Read the rest of the article at:

http://www.inc.com/magazine/20041101/benefits.html

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