United tried to replace bonuses with a $100000 lottery

United tried to replace bonuses with a $100000 lottery

"Our intention was to introduce a better, more exciting program, but we misjudged how these changes would be received by many of you", United President Scott Kirby said in a note to employees.

On Monday, United quickly shelved plans to replace quarterly employee bonuses with a $100,000 lottery prize, after a stinging backlash from its workforce.

USA carrier United Airlines has suspended plans to implement a lottery bonus system.

United spokesperson Maddie King told CBS News, "we announced the new program on Friday, and quickly responded to employee feedback the next business day".

The system would have replaced quarterly, performance-based bonuses and rewards for ideal 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. The grand prize would have been a $100,000 bonus payment while other prizes included new cars, vacations and cash payments starting at $2,000.

One of the comments made by unhappy employees focused on the timeliness that United Airlines has been able to achieve over the last two years; as the most reliable airline operating in the United States, switching to a lottery system for the objective of rewarding employees who make this reliability possible does not make sense. "It was unilaterally determined by management", Ken Diaz, president of United's chapter of the Association of Flight Attendants, said in a letter to his membership.

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In Inc.'s report published on Sunday, comments posted on United's internal employee website, Flying Together, highlighted the disdain workers felt towards the airline's decision.

"I can't imagine driving the Mercedes into the employee lot while everyone around me that worked just as hard, or harder got nothing".

It felt like we had just gotten to a place where employee morale was up. Instead, reports suggest the program was a move to save the airline millions each year spent on employee bonuses and incentives. Chicago-based United employs about 88,000 personnel worldwide.

Kirby said the airline would reach out to employee work groups and changes made would "better reflect your feedback".

Deb Garbor, chief executive of Sol Marketing, says United executives "clearly didn't think through their how employees might react, and they didn't hold their own corporate culture in high regard".

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