As described in the article “How to find the right bonus schemes to boost innovation”, the age of traditional compensation models is over in companies whose success rests on their ability to innovate. Rather than effectively serving its purpose of increasing employee motivation, performance-based remuneration actually restricts employee creativity in some cases, as shown by studies and experiments. Nevertheless, many companies are finding it hard to break with Gaussian employee classifications, performance-based bonus parameters or complex bonus-malus systems. Compensation models that back employee development, team spirit and motivation would contribute considerably more to a company’s long-term success and innovation than promised bonuses.   For years, companies have managed their compensation models based on the “pay for performance” principle. These still widespread extrinsic models try to motivate employees using monetary incentives. At worst, they produce egotistical, go-it-alone individuals, or, as illustrated by examples from large banks, they entice employees to operate in legal grey areas in order to achieve their performance targets and pocket higher bonuses in return.  In contrast to this, there are studies that examine the intrinsic …