Yearly bonuses can be a huge motivation for your performance at work, especially when you feel like you went above and beyond in your job.

This story from a person who worked for an unnamed company shows what happens when you are expected to pay for the mistakes your management makes.

“Two years ago my company announced that we would be starting a very lucrative partnership with Saudi Arabia,” the Redditor explained. However, it soon became apparent that the work was much harder than anticipated.

Performance-wise, everything was done top-notch, but the managers soon realized there was a gaping hole in the Saudi project that would affect every single staff member.

A company cancels performance bonuses for every staff member after the executive managers failed to sign a contract for an exhausting 2-year-long project

Image credits: Yan Krukau (not the actual photo)

Image credits: Kampus Production (not the actual photo)

Image credits: rampantfirefly (not the actual photo)

“Canceling employee bonuses due to mistakes of senior management punishes employees who aren’t responsible for it,” the expert says

Bored Panda reached out to  Dr. Gleb Tsipursky, the CEO of Disaster Avoidance Experts and best-selling author of seven books, including a global bestseller Never Go With Your Gut: How Pioneering Leaders Make the Best Decisions and Avoid Business Disasters.

“If the company’s financial health is at risk due to the failed contract, it may be necessary to cut costs to ensure the company’s survival,” Dr. Gleb commented.

However, he added, “many may argue that canceling employee bonuses due to the mistakes of senior management is unjust, as it punishes employees who are not responsible for the situation.”

“It would be especially inappropriate if executive bonuses weren’t canceled and if no executive was demoted or resigned”

“It can lead to harming employee-boss relationships and a decline in employee morale, motivation, and even result in talented employees leaving the company.”

Moreover, in this case, Dr. Gleb argues that “it would be especially inappropriate and a sign of bad decision-making if executive bonuses weren’t canceled and if no executive was demoted or resigned due to the incompetence shown by the leadership.”

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