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I'm gonna go out on a limb here and guess that will affect the co-worker's future raises a lot more than it will affect the companies future profits. I know a few people like that here, they get zero raises every year and squeal about how its not fair and they are going to do the bare minimum as retaliation. In 99% of the cases I bet the person was useless before they got their first zero raise.
do performance based bonuses and salary increases lead to better productivity? hell yes!
i get to see the situation from the other side. increase the monetary incentive (read commision) a salesman gets, watch him go. give a sales guy a flat rate no matter how much / little he sells, watch him stagnate. other positions are the same only the benchmarks are different.
LorOpie, I am not even sure what to say about that co-worker. talk about downward spiral.
It is a well known phenomenon that employees will only work hard enough to not get fired, and employers will only pay enough to not have their staff quit. Rarely is it any other way.
I see the same type of person at my job. Personally I try to do the best I can all the time. Unfortunately, my boss is the type of person who lives for his job and doesn't seem to understand that to me, the job is how I make a living, it's not my life. It doesn't matter to him how many hours I put in during any given pay period, he always works more (or claims to at least). I'm not going to grow old tied to a desk, I don't care for it that much. I'd rather live a real life on a moderate salary with honest cost of living increases and performance based bonuses than to sell my life for some shiny bobbles I get to use when I'm let out for a day or two.
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