I think this is a creepy development, for several reasons:
1. It will make it more difficult for employees to budget, since they
will not know what their pay will be.
2. Who will define the targets? The power to define targets
will place enormous power in someone's hands. The only way to avoid a
concentration of arbitrary power would be to have the targets be the subject of
collective decision-making, whether through unions or through employee
ownership.
3. Unless the target is shared and the bonus is awarded to
a group that includes all the individuals whose work contributes to the
accomplishment of a stated goal, the bonus system will tend to fragment efforts
and discourage teamwork.
Mr. Leon also sent comment and links on employment-related stress:
I think this kind of connection is not sufficiently discussed. Stress
underlies a variety of medical conditions and contributes significantly to
health care costs. Some part of the elevated health care bill in the US is
attributable to anxiety about health insurance and health care- financial
iatrogenesis!