United Airlines Might Not Replace Bonuses With a Lottery After All

United Airlines

"In what we see as the latest sign that United's management still doesn't'get it, ' numerous news reports say United is likely to eliminate its attendance and performance-based bonuses with a lottery system which will give a very few employees cash and prizes", Corridore wrote.

United spokesperson Maddie King told CBS News, "we announced the new program on Friday, and quickly responded to employee feedback the next business day".

United Airlines (NYSE:UAL) is forgoing cash bonuses and will instead reward employees by entering them into a lottery in which they have the opportunity to win cash, a vehicle or a vacation, according to the Chicago Business Journal.

In an internal memo leaked last week, United Airlines announced they were replacing performance-based bonuses with a new, "exciting" lottery system, in which the company's 80k employees would have the chance to win a handful of prizes. The grand prize would have been a $100,000 bonus payment while other prizes included new cars, vacations and cash payments starting at $2,000.

It would have been available only to workers with a ideal attendance record and when the airline met certain performance targets. The lottery idea was introduced two months later, and it was not received with the kind of enthusiasm that executives of this airline had hoped for.

Following the backlash, United Airlines has made a decision to shelve the new system - for now. Other employees stated that the lottery system does not appeal to them and could thus opt out of participating simply by not doing a good job.

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Kirby said he meant to axe a quarterly bonus scheme with an "exciting" lottery called core4 Score Rewards. The company has been under pressure to keep shareholders happy as budget airlines have been taking away market share.

"We are pressing the pause button on these changes to review your feedback and consider the right way to move ahead".

These were posted on the internal United Airlines employee website, Flying Together.

A United Airlines plane with the Continental Airlines logo on its tail, sits at a gate at O'Hare International airport in Chicago October 1, 2010. News of the bonus program overhaul was initially reported by the Chicago Business Journal. "But we misjudged how these changes would be received by many of you". Last year, the company paid out $87m in such rewards.

A company's culture is indelibly intertwined with an organization's brand. "We're going to pause this and make sure we gather employee feedback to create a program that excites our employees to continue running a great operation".

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