United axes its employee bonus program, replaces it with a lottery, saving millions – Boing Boing

United employees who helped the airline hit key goals got a $300 bonus — until now.

Now, the employees who help save money, improve operational efficiency and go the extra mile for the company will be entered into a lottery whose single annual grand prize is $100,000; they can also win one of 10 Mercedez-Benz cars; one of 20 $20,000 vacations; one of 30 $10,000 vacations; one of 300 $500 bonuses or one of 1,000 $2000 bonuses — in all, the company will present awards to 1,361 employees. The airline employs 89,000 people; more than 87,000 of them will not receive a bonus, no matter how well the airline does or how hard they work.

The airline stands to save tens of millions of dollars through the measure, which they call “meaningful rewards [that] will build excitement and a sense of accomplishment with more bang for the buck.”

But wait, there’s more. In order for an individual employee to be eligible for the lottery, he or she needs to record perfect attendance. Employees who’ve had their $300 per quarter bonus eliminated are now incentivized to show up sick for flights in order to get a chance at a prize.

United Replaces Employee Bonuses With a Lottery, Significantly Cutting Payouts
[JT Genter/The Points Guy]

Sean MacEntee

(via Late Stage Capitalism)

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