We didn’t reach our goal. I gave out bonuses anyway
Last quarter, our team set a goal that we didn't hit. We worked really hard and got really close, but we didn't quite reach it.
We set up our bonus structure so that when we reach the goals that we set together, every person on the team is rewarded financially. There are also benchmarks leading up to our goal that come with smaller bonuses. We created this structure together, so everyone is really bought into it and how it works. Last quarter, we didn’t reach our big goal but we reached one of our benchmarks, which meant there was a bonus, but it was small. The team was okay with that—especially because this is something we created and decided on together.
But I wasn’t okay with it. I felt in my heart like I wanted to do something more for our team.
As I looked at our final revenue numbers for the quarter, I thought about something that I learned in the early years of building my business. I had several different mentors who taught me that it’s important to align compensation and rewards with behaviors that you want to encourage.
When I thought about the team’s performance last quarter, I was so proud of how we showed up in pursuit of our goal. I noticed positive change and growth in our mindsets, even under challenging, uncertain economic conditions. I felt that our team demonstrated a willingness to evolve, try new things, and focus on what we can control. And because of that, we had some really huge successes. For example, we secured the largest contract we've ever engaged in in the history of our business. We figured out how to collaborate on projects we hadn't been able to collaborate on in the past by leveraging our teamwork and taking it to new heights. We also supported each other in big ways: For most of the quarter, we were a team of three because Monique, our Chief of Growth, was out on parental leave. But leading up to going on leave, Monique worked really hard to set us up for success and made sure we could carry things forward while she was gone. I felt like we really took ourselves on this quarter, and we pulled off some great teamwork and collaboration.
For all of those reasons, I made the decision on my own to give everyone a larger bonus, despite the fact that we didn't hit our big goal. The bonus I decided to give was actually more than some would have received even if we had hit the goal. And it felt really good to do that. When I shared the news with the team, I emphasized that the reason for the additional bonus had nothing to do with our revenue numbers. I wanted to reward us for the growth in our mindsets, for our teamwork and collaboration, and for the outstanding performance I witnessed from each person this quarter.
I think that as leaders, if we only reward people for reaching financial goals, we run the risk of encouraging and reinforcing behavior that we don't want to see. For example, people who are laser-focused on numbers might think more selfishly and let things like customer experience and teamwork suffer. When we're thinking about compensation and bonus structures, I think it’s crucial to get really clear on the behaviors we want to see and ensure that the structure we create encourages those behaviors. When we celebrate and reward people based on their behavior, we inspire them to repeat it.
I'm so proud of my team, and I’m so glad I decided to distribute bonuses anyway. I'm so grateful for the chance to celebrate, surprise, and support them. To the leaders out there who feel conflicted when your team falls short of a financial or data-driven goal but who still want to celebrate and reward them, I say: Do it! Reward the behavior you want to see.
Big hugs,
