United’s On-Time Bonus for Employees
Dec 23rd, 2008 | By Dan WebbOn Friday, United announced a new strategy to try to improve on-time performance: bonuses. The company will give $100 for ranking in first, and $65 for a second-place finish or reaching a company goal (which wasn’t explained in the press release).
According to the most recent Air Travel Consumer Report, United’s on-time performance hasn’t been the best. The airline ranked 15th and 17th in August and September, respectively. In October, however, the airline improved to 10th place, though its on-time percentage of 86.3% was a bit above the industry average.
I was talking to Ben from One Mile at a Time about this yesterday, and he did express a valid concern – could this bonus make service a bit more rushed? Well, that convinced me to crack open my copy of Gordon Bethune’s book From Worst to First (a must-read, in my opinion), and it seems that Continental did experience this problem:
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