It is notable that financial bonuses are part of the compensation plan at GE. However, such bonus plans need to be reviewed. GE should look at changing their system of bonuses to make them more obtainable and raise compensation benefits to be comparable with competitors (GE healthcare, 2012). The problem arises when the issue of bonuses is linked to unachievable targets.

It is only wise that the targets are lowered to achievable levels such that it is ensured that employees are able to realize the set targets and thus win the set bonuses. When the targets are too high, employees overwork themselves hoping that they are able to achieve them and thus be compensated.

If it happens that after overworking themselves, the employees are unable to reach the targets, they feel discouraged and may even relax to the extent of working below their capacity. Happier, less stressed employees would mean a lower turnover rate and most likely an increase in production. In conclusion, GE is on the right track with benefits but their compensation plans could use some work.


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