Monday, August 26, 2013

When To Give Bonuses--a Flawed View

The Post has an article on the backlog in VA processing veterans claims.   Part of the problem seems to be that their system to measure performance of their claims processors is flawed--it gives more credit for easy claims and less credit for hard claims than it should.  That points to the difficulty of constructing good measures of performance in a service-oriented bureaucracy.  Build a widget, and you can count widgets. Run a dairy/poultry farm and you count pounds of milk, numbers of eggs, and feed consumed.  But try to measure service and it gets difficult.

But that's not why I'm blogging on the piece.  Another part of the piece is the fact VA is giving bonuses to employees even though the backlog is growing.   Now in principle I've no problem with bonuses being awarded when an organization is having problems.  There can be outstanding performers in poorly-run organizations, and they can be recognized.

But what blew my mind is this quote, from a bigshot HR type:
"“There are many, many employees who are exceeding their minimum standards, and they deserve to be recognized for that,” she said."
 No, no, no and no.  Exceeding the minimum standards is called "being average", and there's no bonuses for that--maybe an "atta-boy" (or girl, or woman).  You give bonuses for being outstanding.

I can only hope the HR person was misquoted, because the statement as quoted reflects poorly on all good government bureaucrats. 

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