Last edit by: WineCountryUA
Update 5 March 2018 per Chicago Tribune (and confirmed by internal employee memo
United walks back new bonus lottery system that angered employees
Per Chicago Business Journal, 2 March 2018
United Airlines employees shocked: Bonuses replaced with lottery
United walks back new bonus lottery system that angered employees
United Airlines on Monday reversed plans to begin awarding bonuses through a lottery system that angered employees.
Scott Kirby, president of the Chicago-based airline, said United was “pressing the pause button” on changes that would have handed out larger bonuses to only a fraction of its workers after hearing employees’ feedback since announcing the changes late last week.
Scott Kirby, president of the Chicago-based airline, said United was “pressing the pause button” on changes that would have handed out larger bonuses to only a fraction of its workers after hearing employees’ feedback since announcing the changes late last week.
Per Chicago Business Journal, 2 March 2018
United Airlines employees shocked: Bonuses replaced with lottery
United Airlines President Scott Kirby sent shock waves through the employee ranks at the Chicago-based airline today.
Kirby issued an employee memo in which he announced that the Chicago-based airline is dropping the quarterly performance bonuses the carrier had been giving out to all employees qualified to receive them.
Kirby said in the memo, obtained by the Chicago Business Journal, that the bonus payouts are being replaced with a new program called "core4 Score Rewards," which Kirby said would include quarterly prizes like cash ranging from $2,000 to $40,000, luxury cars, vacation packages, and a grand of prize of $100,000 awarded to one eligible employee per quarter.
Kirby issued an employee memo in which he announced that the Chicago-based airline is dropping the quarterly performance bonuses the carrier had been giving out to all employees qualified to receive them.
Kirby said in the memo, obtained by the Chicago Business Journal, that the bonus payouts are being replaced with a new program called "core4 Score Rewards," which Kirby said would include quarterly prizes like cash ranging from $2,000 to $40,000, luxury cars, vacation packages, and a grand of prize of $100,000 awarded to one eligible employee per quarter.
UA employees shocked: (qtrly performance) Bonuses replaced with lottery (on "pause")
#181
Join Date: Mar 2012
Programs: Mileage Plus 1K; Marriott Platinum; Hilton Gold
Posts: 6,355
#182
Moderator: United Airlines
Join Date: Jun 2007
Location: SFO
Programs: UA Plat 1.995MM, Hyatt Discoverist, Marriott Plat/LT Gold, Hilton Silver, IHG Plat
Posts: 66,850
So were these metrics counted per person, per unit or per company?
#183
Join Date: May 2006
Location: Wichita
Posts: 628
Greenwald was probably the best of a very bad lot. However, he was not a "Good to Great" advocate. I really recommend you read the book before you mock it.
#184
Join Date: Aug 2012
Location: VPS
Programs: IHG Diamond, Delta PM, Hilton Gold, Accor Gold, Marriott Silver
Posts: 7,265
From what has been posted on FT appears they were company-wide metrics so there was little individual linkage, more of a group/ overall team effort. But that is pretty traditional for larger workgroups, harder have individual objective metrics and there be significant costs in creating such a system. Individual metrics are more common for specific workgroups like sales or senior / execitive levels.
#185
Join Date: Nov 2008
Location: Washington, DC
Programs: United Premier 1K 1MM; AA Plat Pro; Hyatt Globalist; Marriott Platinum; Avis President's Club
Posts: 2,529
Glad to see United is taking a "pause" on this effort. Hope the old program remains in place. I really don't know what they're trying to do but they better be clearer to the employees about intent. I suspect this is part of their cost cutting initiative to reach $3 billion in savings that they promised (for reasons passing my understanding) to their investors.
#186
Join Date: May 2014
Location: DMV
Posts: 2,092
From what has been posted on FT appears they were company-wide metrics so there was little individual linkage, more of a group/ overall team effort. But that is pretty traditional for larger workgroups, harder have individual objective metrics and there be significant costs in creating such a system. Individual metrics are more common for specific workgroups like sales or senior / execitive levels.
Now, the proposed lottery wouldn't really have fixed that as it would still not consider individual performance. It was obviously a faux pas because apparently within UA's culture this was always going to be seen as a veiled salary cut. From a customer point of view - but even a management point of view - it sure would be great if those workers doing right by the customer and the company get extra rewards.
#187
Join Date: Mar 2015
Location: NYC (Primarily EWR)
Programs: UA 1K / *G, Marriott Bonvoy Gold; Avis PC
Posts: 9,005
I don’t think I can recall a corporation burning such badly-needed goodwill from employees so freely and with abandon like UA has done with this plan. Kirby has no way of regaining the trust lost from this debacle. What an idiot.
#188
FlyerTalk Evangelist
Join Date: Apr 2006
Location: Los Angeles, California
Programs: United, American, Delta, Hyatt, Hilton, Hertz, Marriott
Posts: 14,801
How can a company as big and complex as United announce something that has not been well thought out? The effects of this stupid plan - and its "pause" will have an extremely negative impact on United's already delicate public image - just as it was beginning to recover from last year's dragging incident. What stupid self-inflected mess! Not to mention even more CRJ 200!
Why can't this company get it right?
Why can't this company get it right?
#189
Join Date: Dec 2007
Location: SFO
Programs: UA 1K and MM
Posts: 174
I'm not sure whats more disturbing 1) that someone at United thought this patently horrible idea was a good idea or 2) that United apparently did not attempt to focus group test this concept with rank and file employees before announcing it. It does not give one comfort into Kirby's decision making process and his brain (or apparently lack of brain) trust at United. If he can flub such an obvious decision that almost is so laughable it reads like an Onion satire article, how the hell is management making the complex decisions needed to make an airline run well. What obviously bad idea is Kirby going to adopt next. I hope this guy's time at United is limited.
#191
Join Date: Feb 2002
Location: NYC: UA 1K, DL Platinum, AAirpass, Avis PC
Posts: 4,599
There are a lot of good things in it and many other books on the business shelf, but United needed more than a new CEO.
Few on flyertalk would have said in 2007 "we really need Richard Anderson to come in and turn around Delta."
Turns out having run Northwest he was the right guy to get their labor groups to behave during the acquisition and keep the flight attendants non union. Glenn Hausenstein from Continental engineered the product and network moves, Ed Bastian kept the Delta Atlanta DNA intact. Both of those guys were not Anderson picks, but inherited with the business. Meanwhile AA/UA got to battle their unions, while Delta didn't (with a lot of help from DL FA unions being a bigger group than NWs), and Delta enjoyed the lowest variable cost hubs in the business in a time of consolidation that let them scale them further.
There are reasons top talent wasn't lined up for the UA job - and it's not just because of the board.
Last edited by cerealmarketer; Mar 5, 2018 at 8:18 pm
#192
Join Date: Jul 2012
Location: SNA
Programs: UA LT Plat, 2.5mm, Hilton LTD, SPG LT Gold, Marriott Gold, Hertz Whatever
Posts: 161
That one tweet seems to imply that bonuses were and I suppose now still will be automatic. Automatic bonuses are basically worthless in terms of encouraging good performance because they just end up being considered to be a part of people's salaries i.e. something people feel entitled to regardless of their personal performance. That sense of entitlement certainly came through in a few of the more outraged posts about it.
UA might keep hiring the wrong CEOs, but maybe it's because trying to manage a company with an entrenched union workforce full of 40+ employees that will place their personal benefits and perks above anything else is like trying to catch a greased up pig.
UA might keep hiring the wrong CEOs, but maybe it's because trying to manage a company with an entrenched union workforce full of 40+ employees that will place their personal benefits and perks above anything else is like trying to catch a greased up pig.
And, by the way, if you're going to offer a car or something, make sure it includes an additional amount to cover the extra taxes so that the car is not a burden.
Last edited by WineCountryUA; Mar 6, 2018 at 12:17 am Reason: merging consecutive posts by same member
#193
Join Date: May 2013
Posts: 3,361
How can a company as big and complex as United announce something that has not been well thought out? The effects of this stupid plan - and its "pause" will have an extremely negative impact on United's already delicate public image - just as it was beginning to recover from last year's dragging incident. What stupid self-inflected mess! Not to mention even more CRJ 200!
Why can't this company get it right?
Why can't this company get it right?
#194
Join Date: Dec 2010
Location: San Francisco, CA (SFO)
Programs: UA 1K, UA .53 MM, Marriott Gold, Nexus, GE, TSA Pre, Hertz PC
Posts: 581
It reminded me of the personnel pitching airline credit cards and energy discounts in the airport terminals...I keep my head down and try to avoid them at all costs.
#195
Join Date: Jul 2005
Posts: 2,324
Making infallible decisions at big companies takes lots and lots of time. This is certainly an issue United (and other more established companies) struggle with. Many companies are trying to become more quick and nimble like Amazon or Google, making decisions quickly and taking some risks (in areas that don't impact safety). I guess that's not okay with FlyerTalk either.
I was and still am in some ways taking a wait and see approach to Kirby and found the vitriole here from day one regarding him concerning at best. After this, I think it’s clear that he’s damaged himself with the employee bases, who were sceptical of him from the start.
Last edited by tuolumne; Mar 6, 2018 at 6:19 am