The first bonus scheme I ever encountered was working as a vehicle fitter for a local authority public service vehicle operation (bus company). It was lousy.
The bonus made up 40% of total wages and, unless a group of individuals had been totally crass, it was paid every week.
None the less, the fact that you had to perform at a certain pace all week, failure to do so resulted in the entire group bonus being threatened, added a pressure to work delivery that was unpleasant.
With that organisation I went on to become a junior manager and then a senior manager of the maintenance department.
Being a heavily unionised environment I had little disciplinary leverage over my work force, so I used a mild conspiracy against the bonus system as motivation.
I ensured that my people had the best chance of maximising the bonus and that little would threaten their earnings. In exchange I expected gradual, incremental improvements in performance.
I worked with the shop stewards in the same way that I worked with my chargehands and foremen to deliver the best technology and tools (plus maximum bonus) in exchange for the best return they could deliver.
I was nearly 10 years in that job and at the finish we were one of the most economic fleet maintenance operation in the UK.
This was proven when my boss sent me a trade magazine article praising the performance, in terms of down time and major service turnaround, of another similar organisation. I sent him the latest annual statistic of our own department, which not only beat that featured in the article, but beat it by a long, long way. The sad thing was that my boss didn't know.
I went back there 10 years after I left for a visit. The same processes I had developed were still in use and they were still high performers.
The difference here is one of management versus leadership.
Your people are your most valuable asset.