Want to Earn a Bonus? Work for CASE Uncle Sam There is generally much criticism
ID: 370694 • Letter: W
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Want to Earn a Bonus? Work for CASE Uncle Sam There is generally much criticism when it comes to compensating executives employed in for-profit business. But federal employees in a number of agencies also reaped generous incentive pay despite subpar performance, including when they made decisions contrary to their agency's mission and values was delayed. To encourage higher productivity, the VA management team changed performance targets for claims processors between 2010 and 2012. VA claims processors would be rewarded for processing a high volume of claims. Difficult, complicated cases were set aside because they were time-consuming to process and would result in no bonus for the The Internal Revenue Service (IRS) handed out processor. The incentive system worked, but at nearly $3 million in performance bonuses to 2,800 what cost? employees who had recently been disciplined. TheIncentives were not limited to claims proces- employees had committed a wide range of infrac- sors. Executives at the VA earned performance bo- tions, including fraud, failure to pay taxes, and nuses as well-totaling $2.7 million. Allegations misuse of government travel cards. Some of the of misrepresenting patient wait times to make it employees had been disciplined with reprimands, appear that services were provided on a timely ba suspension, and even termination. However, the IRS sis have spread throughout the VA system. Perfor- generally doesn't take into account such conduct is- mance bonuses were paid to VA hospitals that had sues when determining bonuses. IRS employees who low backlogs for treatment. In an effort to earn the are represented by a labor union are not prevented incentives, some employees were directed not to put from receiving a performance bonus even if they are veterans on wait lists, making it appear that wait subject to disciplinary action. times were short. The situation at the Veterans Administration was even more outrageous. Nearly $300 million in annual bonuses were distributed at this provider of health care to American military veterans. A scandal to meet agency performance metrics, treatment for many veterans Federal officials took the agency's leadership to task and noted that there was an extreme reluctance to hold employees and executives accountable. Deci- sions made by many of these managers caused harm to veterans seeking health care. After a unanimous vote to eliminate all bonuses, lawmakers reversed erupted when it was discovered thatExplanation / Answer
1. At both, the organization, bonus system is not perfect. At IRS, the company is paying the bonus to a fraudster and person who is already misusing travel cards etc. and at VA, Employees are playing with the records to get bonuses. Which gives us a lesson that, incentives should not only be based upon figures and numbers there should be something that can tell the story about and behind the numbers. In both the companies only the numbers are the sole criteria for securing the bonus.
2. These agencies should find a way to look beyond the numbers for the incentive. Supervisors comments, colleagues comments, and juniours recommendations should be taken before announcing the final incentives.
3. I will rate this as a poor pay system because it will encourage the employee to cheat on the duties assigned to him/her by any means just to secure incentive.
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