T-Mobile Netherlands drops staff bonuses, year-end reviews

T-Mobile Netherlands has stopped paying individual performance bonuses and conducting annual reviews with staff, HR director David Thomas told Het Financieele Dagblad. He said the annual reviews were focused too much on money, rankings and past performance, whereas instead employees should be focused on their future development. 

The incentive of an individual bonus often doesn't take account of the individual's performance in a team or may be based on work they are already expected to do. The incentive also rarely leads to improvement in the individual's performance, Thomas said. 

T-Mobile does make an exception for sales staff, where the financial incentive is a strong motivating factor. Around 500 sales staff are still eligible for bonuses.