‘The company lost over half its clients.’ – Business Owner Creates Bad New Bonus System And Alienates His Employees And Customers

There’s nothing quite like realizing that you have a great job – one that would not be easy to replace and one that lets you do what you love without hassling with the necessary evils that come with it.

OP had one of those in the tech sector. He got to help all of the clients without having to deal with billing, marketing, or any other necessary “business” headaches.

This story came from 5 years ago when I worked for a small IT MSP company.

We had four full-time techs, with the “newest” tech having about 5 years of experience and me being the most seasoned tech with nearly 15 years of experience.

Between the four of us we managed about a thousand PCs and about 20 servers spread out over about 30 clients. None of us were assigned to a specific client; we would all take turns grabbing whatever tickets came in.

All of our work was lump sum or contract work, so we never had to worry about how long a problem took to fix or how much it would cost the client.

We had an Account Manager who handled all the billing and things with the clients. It was a dream job for a tech; we got to show up and do our jobs and not have to deal with sales or billing any other client drama.

Things were going so well, in fact, that OP felt justified in asking for a raise. Initially, it seemed like his boss agreed, though he said he wanted time to think about the specifics.

I not only had the most experience but was also the most self-motivated. I would often come in early and get started on the tickets that came in after hours, and I would assist the other techs if they came across a complex problem. Everyone, including the owner, referred to me as the “Senior Tech,” even though that wasn’t my title.

After two years working there, I decided to talk to the owner about a raise. I brought all kinds of information to our meeting, showing that I closed the most tickets and received the most positive feedback from a survey we sent our clients.

He agreed to give me a raise, but said he wanted to think about how much to give me and that he would get back to me.

Then, he announced that instead of raises, teams would be issued weekly bonuses based on whether or not they met their new goals.

A few weeks later, he called a company meeting and announced that he had decided to change some things and that he would no longer be giving anyone raises.

Instead, he would set up KPIs (Key Performance Indicators) and the entire tech team would receive weekly bonuses based on hitting those numbers.

I didn’t like this at all, as it meant my pay was dependent on the performance of everyone on the team and not just me. I found out later one of the other techs had also asked for a raise, so this was the owner’s solution to pay us less.

The KPIs were simple enough. If a ticket came in, we had to acknowledge it within 15 minutes to achieve a score of 100. If we missed the 15-minute window, the score for that ticket was 0.

There were a total of 10 things we had to hit, including how long the ticket was open before we marked it as complete.

If the total score for the week was above 90 we each received a $100 bonus.

I saw major problems with this bonus system and I shared my concerns with the owner.

He got very annoyed with me and said “Just hit the KPIs!”

OP and his team decided they would always meet those goals, and so get more money – but they weren’t going to care how meeting those goals affected their clients.

Cue the Malicious Compliance

We all figured out pretty quickly how to game the KPI system. We could acknowledge a ticket in the system but it didn’t check if we had actually called the client. We would just email and mark the ticket as “Reached out to the client.”

A big issue is that sometimes a client would put in a low-priority ticket and ask that we schedule it for some time the following week, but that would make us miss our KPI.

So we would start hounding the client to schedule it sooner, and if they were not available, we would simply close the ticket.

We quickly learned to hit our KPIs and start getting a bonus every week, however, it caused our customer service to drop, which is exactly what I had warned the owner of.

During the previous 2 years, we had never had a complaint about our service, but now there were multiple complaints every week.

This whole process added a ton of stress to us, as we all started to fight when someone missed a KPI and we all started to work late on Fridays to try and get in those last few numbers.

Complaints started to roll in, and by the time the boss changed his tune, they had lost some clients and everyone in OP’s department had put in their notice.

After 2 months the owner finally realized he had made a mistake. He removed the bonus system (without giving us a raise) and asked us to go back to how things were.

At this point, I was so stressed I had already started looking for another job, and we had lost 2 clients.

I was the first to put in my two weeks’ notice, but before I left the other three techs had all put in notice as well.

A hard lesson, but one the boss hopefully learned.

The last I heard the company had lost over half its clients and the owner had to bring in several new techs, paying them over 20% more than I had asked for my raise.

TL;DR Instead of giving a raise, the boss gave us a bonus for hitting KPIs, even though that caused our customer service to drop, nearly costing him his businesses

Does Reddit think they did? Let’s see!

The top comment says it’s crazy how many bosses think hiring new people is cheaper than paying the experienced ones you have.

Which is wild, because it seems like a no-brainer.

Seriously, make it make sense.

We’ve all seen it happen.

They think more managers should take a turn in the trenches.

It seems so obvious to those of us who are peons.

Strange how that is so often the case.

If you liked that story, check out this post about a group of employees who got together and why working from home was a good financial decision.