Even more common is a useless system, in which rewards are handed out that do nothing. I’m still amazed by how often large companies compensate junior or mid-level employees on company earnings. If your project can move earnings by no more than a tiny fraction of a percent, how does a company-earnings bonus motivate you? You might as well put your energy into twiddling your thumbs and fooling your boss into thinking you are indispensable while enjoying the free ride if earnings go up. (Economists call a similar issue in the use of public goods the “free-rider problem.”)
