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The hidden cost of flat bonuses

Flat bonuses seem fair—but they actually punish top performers and reward mediocrity. Here’s why it’s a problem.

You might think: “Let’s just give everyone the same bonus. It’s simple, keeps things fair, and avoids drama.” But here’s the catch:

Flat bonuses are quietly demoralizing your best people.

Let’s break down why and what you can do instead.

Why shared bonuses feel safe (but backfire)

When companies roll out bonus programs, they often start with:

  • Equal split among the crew
  • “Everyone gets something” mindset
  • No real performance differentiation

It’s easy to manage.
No awkward conversations.
But over time, it sends the wrong message:

“It doesn’t matter if you work harder, finish faster, or do better work. You get the same as everyone else.”

That wears on your A-players.
And when they burn out or quit?
You’re left with average.

What this looks like in the field

  • Your hardest-working crew members start slowing down
  • “Why bother?” becomes the attitude
  • Top performers feel like they’re carrying the team
  • You start losing your best workers, or worse, they stay and disengage

Why it hits harder than you think

Flat bonuses don’t just hurt morale. They eat into profit:

  • You pay bonuses even when jobs go over budget
  • Low performers don’t feel pressure to improve
  • You miss chances to coach based on real performance data

This isn’t just a culture issue.
It’s a financial one.

A better way: Individual ProPays

With Protiv, bonuses are tied to individual performance through ProPays. That means:

  • Each person earns based on the job they worked
  • Bonuses are based on real job results: revenue, time, budget
  • No more guessing who earned what

You still get team wins, but now everyone has skin in the game.

How to transition from flat to performance-based

Here’s what customers typically do:

  1. Start tracking ProPays behind the scenes while keeping flat bonuses
  2. Show ProPay data to the team during tailgate talks (no payout change yet)
  3. Gradually transition to payout based on ProPay performance

This helps you ease into the shift without backlash.

Talking to your crew about the change

Be real with them:

“We’re moving to a system where you earn more when the job goes well. It rewards the right behavior, and that helps everyone win.”

You don’t need a motivational speech. Just connect performance to pay.