Monday, 16 July, 2018

United Airlines Might Not Replace Bonuses With a Lottery After All

United Airlines backpedals on turning employee bonuses into a lottery United Airlines Might Not Replace Bonuses With a Lottery After All
Nellie Chapman | 06 March, 2018, 03:46

The system would have replaced quarterly, performance-based bonuses and rewards for flawless attendance with a lottery-based system, where eligible employees would be entered into a drawing for a variety of prizes if the company hit one of its performance goals during a calendar quarter.

Instead, if the company meets certain performance goals, the company will hold a drawing for quarterly prizes of $2,000 to $4,000 in cash, luxury cars, vacation packages and one $100,000 grand prize per quarter. But due to the randomness inherent in a lottery, not all United employees would be guaranteed a reward for high performance, which left a number of workers upset with the decision, according to internal employee comments obtained by Inc. Business Insider obtained a copy of the email, which noted that the company "set all-time records in nearly every operating metric" before revealing that the company's performance-based bonus system would be converted into a lottery.

In its place, the core4 Score Rewards would see one random staffer awarded a $100,000 cash prize each quarter.

A sampling of the majority view had one first officer calling the new program "insulting and a poor idea".

To add insult to injury, an individual employee is only eligible for United's lottery if they are able to maintain a flawless attendance record.

The post also complained that employees did not receive a $1,000 bonus after the new tax law passed. The quick and unified backlash from United's flight attendants and other employees has seen United, temproarily at least, put the proposed change on ice. While he noted that the new bonus system is separate from the airline's profit-sharing payments, he said the new system contradicts the company's principles.

The airline described the new scheme as a "more impactful and meaningful program" for its employees who used to be eligible for a bonus if they attained flawless attendance.

The new United has been built on the principle of "shared purpose" and it only makes sense that the fruits of that united effort would mean shared reward.

"I would be embarrassed and mortified to win this lottery", a flight attendant wrote on the internal site. "I recommend United management reconsider this morale killing program", said a captain.

"Being "caring" can not be choosy", he said.

Henry Harteveldt, travel industry analyst and president of Atmosphere Research Group, said he thought United had focused too much on the potential cost savings of dropping regular cash bonuses and failed to consider that the move could divide employees and potentially harm customer service.

United employs almost 90,000 people.