EVIDENCE-BACKED ANSWER
Which behaviors do bonuses encourage?
Reward systems make a deliberate choice between individual competition and shared outcomes.
Some companies limit individual bonuses while others use transparent profit sharing; the key distinction is the behavior and time horizon the reward encourages.
CROSS-COMPANY SYNTHESIS
Evidence-linked practices
01
Buffer
Transparent profit sharing
A defined share of annual net profit is distributed using equal, salary and tenure components.
Buffer Profit Share02
Bending Spoons
Sustained impact over bonuses
Long-term effectiveness and strong fixed pay are preferred over short-term target bonuses.
Bending Spoons Principles03
37signals
Shared outcomes over individual competition
Rewards connect to company outcomes without creating internal individual competition.
37signals Handbook