UK: Brain food - It just might work - Bonus of contention.

UK: Brain food - It just might work - Bonus of contention. - How about this as a sure-fire formula for bad labour relations and poor performance? Don't waste time fussing and fretting about paying your people in the top quartile. Underpay them by 25% to

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Last Updated: 31 Aug 2010

How about this as a sure-fire formula for bad labour relations and poor performance? Don't waste time fussing and fretting about paying your people in the top quartile. Underpay them by 25% to 33% of the industry average.

Hold them responsible, too, for machine breakdowns and quality failures - cut their bonuses accordingly. If they're five minutes late don't give them a bonus that day: half-an-hour late, and they're back to their miserable basic pay for the whole week. Yet the company applying this Draconian financial regime, steel mini-mill expert Nucor, is the fastest-growing metals business in the US, doubling total return to investors every five years. The secret ingredient in the formula is that bonuses run at between 80% and 200% of base pay, based on team productivity and - here's the crucial twist - they are paid every week.

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