That wasn't really what I was saying. I agree that hard work should be rewarded. I simply disagree with the premise that everyone will do the bare minimum otherwise.have to disagree.
Obviously not going to get into numbers. Once upon a time I worked for a firm in the financial district. Virtually everyone from the swinging dicks to the mail room. Were base + bonus (paid quarterly). The pool was a percentage of profits. Good years my bonus was 80-100% of base. Bad years maybe 10-20%. Our turn over was extremely low. When the company closed about 90% of staff had been there 15 years and more (I was 18) …There is a real cost to turnover when you have to train people. Over and over until they get up to speed…….
Also, when the financial crises of 2008 hit.While a lot of friends and colleagues at other financial firms were getting pink slips. We didn’t let a single person go. Profits were slim for a few years, but those higher up the food chain (traders., execs) willing reduced bonus amounts. So we could keep profits but not have to let anyone go.
there isn’t a better pay formula for productivity then base+bonus. Gives companies and management flexibility to navigate tough times, and reward employees during good. Aka productivity. “Greed” or simply the desire for some $$ is the strongest motivator known to man kind..that’s a proven fact. Else why do you work???
guess in the end it depends on who you work for. And your management team
Merit-based pay is a great thing. My problem with tipping as we know it is that it's not purely merit based. If a tip is expected as a matter of course regardless of service, it's no longer an accurate reflection on said service.