I’m sure we’ve all worked at companies where the loudest guy gets the biggest bonus. In most companies, compensation is determined by a cabal of execs—guys that you may never have met—evaluating work that happened up to a whole year ago. Bonus compensation ends up being a function of politics, not performance.
51% of employees feel that the performance reviews upon which bonus compensation is based are inaccurate according to a 2011 survey by Globoforce. A 2010 literature survey in Psychology Today concluded that 87% to 90% of employees hate performance reviews because the feedback is not useful, the whole process is stressful, and they’re left demotivated as a result.