Boeing lessons | Beyond financial metrics: What factors should affect bonuses?

Boeing recently overhauled the bonus system for all employees working in the Boeing Commercial Airlines (BCA) unit in a bid to fix serial safety issues within the company.

The airline is currently in crisis following a mid-air door blowout on its 737 Max 9 model and fatal crashes in 2018 and 2019. The Federal Aviation Administration says that employees lack significant knowledge of safety protocols, echoed by current and former employees and whistleblowers who claim there is a culture of retaliation against those who identify safety and security concerns.

In an attempt to create a company culture that prioritizes safety and rewards employees who practice it, bonus payouts to non-unionized executives, managers, and employees will now value performance on safety and quality metrics above financial metrics.

This prompts HR, recognition, and reward teams in all industries to consider how they determine bonus payouts and what behaviors they wish to reward.