Mar 5, 2018, 1:08 pm
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")
Mar 2, 2018, 7:26 pm
#34
Join Date: Jun 2016
Programs: UA 1K, National Executive Elite, Marriott Gold, Hertz President's Circle
Posts: 65
- The Polaris retrofit and lounge building has been so hilariously slow that it's eliminated much of the initial goodwill from the Polaris announcement
- On the theme of eliminating customer goodwill, the onboard service cuts (and the catering cuts in domestic first, and the ongoing unresolved Denver issue) certainly smacks of something Kirby is responsible for since this is what he was known for at AA
- Now this stinker of an idea, which any kid in behavioral econ class could've told you was a bad idea, has infuriated employees. One of Oscar's successes since coming onboard was finally instituting a semblance of satisfaction among the employees and some faith in the leadership. This just stomps all over that.
Less than two years into the job, Kirby's incompetence has been truly impressive.
Mar 2, 2018, 7:28 pm
#35
FlyerTalk Evangelist
Join Date: Jun 2001
Programs: DL 1 million, AA 1 mil, HH lapsed Diamond, Marriott Plat
Posts: 28,190
This is just an unspeakably bad idea, like McKinsey was attempting self-parody.
Mar 2, 2018, 8:26 pm
#39
Join Date: Oct 2016
Posts: 278
Scenario A: Employees A, B, C, D, and E all get $100 bonus. Scenario B: Employee E randomly gets a $500 bonus and the rest get nothing. Which scenario do you think is going to cause more bitterness and discontentment?
Mar 2, 2018, 8:29 pm
#40
Join Date: Aug 2010
Location: Morris County, NJ
Programs: UA 1K/*G, Avis Pres, Marriott Plat
Posts: 2,305
Would love to hear Gordon’s take on this. He was the big proponent of EVERYONE in the company getting a bonus if the targets were met. When an employee asked why folks in the reservation call center deserved a bonus for the on-time metric, he held up the (expensive mechanical) watch on his wrist and said ... “What part of this watch don’t we need”?
Even the smallest screw or tiniest cog makes the watch run.
Kirby is keeping the hands and throwing away the gears. What a horrific idea.
Even the smallest screw or tiniest cog makes the watch run.
Kirby is keeping the hands and throwing away the gears. What a horrific idea.
Mar 2, 2018, 8:32 pm
#41
Join Date: Aug 2007
Location: Tx
Programs: AA, UA, WN
Posts: 812
that luxury car was "valued" at "1 million dollars"
Mar 2, 2018, 8:37 pm
#42
Join Date: Sep 2003
Location: LAX
Programs: UA MM | BA Silver
Posts: 7,193
Mar 2, 2018, 8:51 pm
#43
FlyerTalk Evangelist
Join Date: Dec 2006
Location: Pacific Northwest
Programs: UA Gold 1MM, AS 75k, AA Plat, Bonvoyed Gold, Honors Dia, Hyatt Explorer, IHG Plat, ...
Posts: 16,842
i dunno. A crazy number of people are willing to spend a small amount for a chance to win a large amount. Granted, the ratio is different than your example, but that is true for the UA example, too ($100k was mentioned?). Still I think it is a bad idea because people aren’t given a choice here, unlike with a regular lottery that is also known as a tax on those who are bad at math. And if they wanted to use their traditional bonus to buy lottery tickets voluntarily, there would be nothing stopping them.
Mar 2, 2018, 9:24 pm
#44
Join Date: May 2013
Posts: 3,361
I would hope that there was some testing done among employees before rolling it out. Clearly, there are people that don’t like it.
Mar 2, 2018, 9:38 pm
#45
FlyerTalk Evangelist
Join Date: Oct 2001
Location: Austin, TX
Posts: 21,395
Not, "Hey, would you like to replace your bonus with an entry into a drawing for $100,000?"
