United Airlines bonus lottery threatens to backfire

Proactive Investors Monday, 5 March 2018 ()
United Airlines has taken an unconventional and somewhat controversial approach to its employee benefits, replacing cash payments with a lottery draw. According to press reports, regarding a memo sent by company president Scott Kirby, the airline’s employees will be put in a draw to win cars and vacations instead of regular cash performance bonuses. Kirby’s memo said it was an “exciting new rewards program”, but, somewhat unsurprisingly the move didn’t garner positive public relations with commentators describing the reaction among employees as a “firestorm”. In New York, parent company United Continental Holdings Inc (NYSE:UAL) stock was down 0.55% trading at US$67.29 in Monday’s early deals.
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News video: United Airlines Almost Replaced Bonuses with a $100,000 Lottery

▶ United Airlines Almost Replaced Bonuses with a $100,000 Lottery 00:54

United Airlines Almost Replaced Bonuses with a $100,000 Lottery The lottery idea was thrown out after backlash from a lot of the company's 90,000 workers. In addition to $100,000 given to a random employee, 1,300 other would receive small bonuses of $2,000 or $5,000. There were also 50 vacation...

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Tweets about this

mikemmoon

Michael Moon, PhD Another example of an organization whose leaders do not understand how to properly motivate and incentivize employe… https://t.co/vnziVpLN2Y 2 minutes ago

denvertowns

Denver Communities United Airlines does about-face on controversial lottery bonus https://t.co/TLxDqBXkvX 2 minutes ago

MatBoehmichen

Matthias Böhmichen #Grow: United Airlines Is 'Pressing the Pause Button' on Its Lottery Bonus Program - What a wild 72 hours it's been. https://t.co/EiiWIrQr6E 3 minutes ago

holgermu

Holger Mueller RT @TonyBaer: How to de-motivate employees. @united replaces bonus program with a lottery, which would give awards only to about 1-2% of th… 3 minutes ago

fuddlemark

stupid garbage frog RT @CBSNews: United Airlines swaps out employee bonuses with lottery, employees reportedly unhappy to get chance at cash or prizes instead… 3 minutes ago

HRDigitalBE

HR Digital RT @baski_LA: United Airlines does abrupt about-face on controversial lottery bonus https://t.co/PRYacH6PkV via @SFBusinessTimes #NextChat… 4 minutes ago

Truthofall1

St.Micheal United replaced its performance-based bonus system with a lottery — and employees are furious https://t.co/CmQ6E1cnrD via @businessinsider 7 minutes ago

Okavangomick

Michael Dean United Airlines enraged employees yesterday by announcing a big change in their employee bonus system. “The new pro… https://t.co/FNDDJY51vU 7 minutes ago


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