Week 3 Journal Entry

In early 2018, United Airlines President Scott Kirby emailed all 88,000 employees with an announcement: “As we look to continue improving, we took a step back and decided to replace the quarterly operational bonus and perfect attendance programs with an exciting new rewards program called Core4 Score Rewards.”Old quarterly bonus system: if United (i.e., the company as a whole) met its performance goals, employees received a maximum of $375 per quarter. Recently employees received an average of $1200/year in bonus.Core4 Score Rewards: if United meets its performance goals AND an employee has perfect attendance, that employee will be entered into a quarterly lottery for a range of prizes, from $2000 to Mercedes automobiles to $100,000. About 1.6 percent of employees would win something each quarter.Apply what you learned from “Do Financial Incentives Drive Company Performance?” to this real-life scenario. Using concepts from that reading, give 2 reasons why you think this would be a good or bad idea for United to implement.