2023 / Michael Gerlich

Time for Change: Rethinking Top Managers’ Bonus Systems for A Sustainable and Prosperous Future

In response to the profound societal changes in Central Europe, employees’ priorities are shifting towards higher-level needs, compelling Human Resource Management (HRM) practices to adapt and evolve. This paper argues that traditional HRM approaches, which primarily focus on basic needs, are no longer sufficient in meeting the complex demands of the modern workforce. Challenging the status quo, the paper advocates for systemic changes in HRM practices, including creating a flexible HR space, elevating HRM to the C-suite level, and fostering an inclusive culture. By exploring the need for transformation in organizational culture, performance management, employee engagement, and leadership development, this paper highlights the urgency for organizations to boldly implement these changes to attract and retain top talent while fostering a fulfilling, engaging, and productive work environment. Companies must seize the opportunity to drive meaningful and lasting change, ensuring their workforce remains motivated, satisfied, and committed to the company’s long-term success.


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