Rethink Your Bonus Program

Rethink Your Bonus Program

Update: 2025-10-21
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Description

On today’s Dear Heretics segment, Kelli and Nolan analyze why traditional bonus programs fail at early-stage companies, advocating for flexible sprint incentives and spot bonuses over rigid annual structures that create organizational debt.

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KEEP UP WITH NOLAN + KELLI ON LINKEDIN

Nolan: https://www.linkedin.com/in/nolan-church/

Kelli: https://www.linkedin.com/in/kellidragovich/

For coaching and advising inquire at

https://kellidragovich.com/

TIMESTAMPS:

(00:00 ) Introduction: The Bonus Program Question

(01:04 ) The Cyclical Wave & Sales Incentives

(01:42 ) Why Early-Stage Companies Struggle

(02:46 ) The Coin-Operating Problem

(03:26 ) The 96% Problem: Legacy & Recruiting Pressure

(04:34 ) You Can’t Put the Toothpaste Back

(05:30 ) Equity Over Bonuses

(06:09 ) Inconsistent Application Across Teams

(06:43 ) Walking It Back Is Brutal

(08:06 ) Sponsor: Metaview

(09:28 ) Technical Debt vs People Debt

(11:10 ) Second Order Consequences

(12:31 ) MBOs Are a Fable

(12:53 ) The Solution: Sprint Incentives

(14:04 ) Surprise and Delight: Spot Bonuses

(15:08 ) Discretionary Budgets & Agility

(15:54 ) Final Thoughts: Avoid People Debt

(15:59 ) Outro



This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit hrheretics.substack.com
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Rethink Your Bonus Program

Rethink Your Bonus Program

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