Bonus pushed back - should I be annoyed?

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PlayingLife
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Bonus pushed back - should I be annoyed?

Post by PlayingLife » Mon Oct 16, 2017 10:05 am

BH's,

Today my company sent an announcement out, stating that bonus payouts will be pushed back about a month and a half in 2018, and will remain this way indefinitely. Reasoning provided is that now NA will be aligned in terms of payout timeline with the rest of the globe, and that this is being done in the spirit of fairness.

My immediate reaction was to get very irritated. Last year they cancelled profit sharing permanently and then announced just a week later to the public, that we are the single most profitable company in our sector. Now this new move means they hold on to our earned cash longer. There are many benefits in other regions that are not aligned with NA, such as vacation time in many European countries, and paternity/maternity time, so I find referencing " global fairness" as unjust.

What do you think? Would you be irritated, or do you think I am over reacting?

ResearchMed
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Re: Bonus pushed back - should I be annoyed?

Post by ResearchMed » Mon Oct 16, 2017 10:10 am

What is "NA"?

RM
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Yiewsley
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Re: Bonus pushed back - should I be annoyed?

Post by Yiewsley » Mon Oct 16, 2017 10:11 am

Life is short. Since you can't do anything about it, it's a waste of time to spend any more time thinking about it than you already have.

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8foot7
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Re: Bonus pushed back - should I be annoyed?

Post by 8foot7 » Mon Oct 16, 2017 10:12 am

Sure, be annoyed. Ultimately either accept it or look for new job.

MathWizard
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Re: Bonus pushed back - should I be annoyed?

Post by MathWizard » Mon Oct 16, 2017 10:14 am

ResearchMed wrote:
Mon Oct 16, 2017 10:10 am
What is "NA"?

RM
I'd guess North America, since the rest of the sentence refers to the rest of the globe.

FootballFan5548
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Re: Bonus pushed back - should I be annoyed?

Post by FootballFan5548 » Mon Oct 16, 2017 10:17 am

Same happened to us a few years back. Bonuses used to be paid in late January. Then one year they got moved to mid-February, and now they're paid out in 2nd week of March. It stunk then, but it only really stinks for the one year, after that it's still paid out every 12 months no matter how you look at it.

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Pajamas
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Re: Bonus pushed back - should I be annoyed?

Post by Pajamas » Mon Oct 16, 2017 10:20 am

I don't think you have grounds to be irritated about the reasoning for the alignment of the timing of the bonus payment if it is genuine, but you do you have grounds to be irritated that other benefits are not equivalent, in that context. If they are just using it as an excuse to delay your bonus, then your irritation is justifiable. I have worked at companies where pay increases over cost-of-living were eliminated in favor of bonuses to avoid the cumulative effect over time and the corresponding commitment to employees, which is much more irritating than the timing.

Companies frequently have different pay and different benefits for workers in different geographical regions or in the same region for different job classifications. Part of the reason many companies have operations in other countries is because workers in those countries aren't compensated as well as in the company's home country or for tax purposes. It's all about money.
ResearchMed wrote:
Mon Oct 16, 2017 10:10 am
What is "NA"?
Presumably an abbreviation for "North America".

MathWizard
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Re: Bonus pushed back - should I be annoyed?

Post by MathWizard » Mon Oct 16, 2017 10:22 am

OP,

I think you are over-reacting. Getting upset will not help you. Consider that the other employees
around the globe were upset about receiving their bonus later. Should they have been upset?
What are there wages compared to yours? Ultimately, worrying about what is "fair" will get you
nowhere, unless you have a plan to correct it (e.g. looking or another job).

If the bonus and profit sharing were a large part of the reason to work there, you may want to
update your resume. The push back on the date of your bonus is not as important as the loss of the
profit sharing. You still get the bonus, just a little later. The loss of profit-sharing means you get
less compensation overall, unless your wages went up to compensate for the loss.

Ultimately, you must decide whether the total compensation is worth your effort, and if you can get a better
deal elsewhere.

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dm200
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Re: Bonus pushed back - should I be annoyed?

Post by dm200 » Mon Oct 16, 2017 10:22 am

Such changes are common in recent decades from employers - whether it be terminating defined benefit pensions to higher costs for employee health insurance to termination of retiree health insurance benefits. At least they have not terminated the bonus payments..

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Re: Bonus pushed back - should I be annoyed?

Post by LarryAllen » Mon Oct 16, 2017 10:29 am

I would keep your annoyance to yourself at work. As an employer I would find it irritating that an employee was complaining about the timing of a "bonus."

PlayingLife
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Re: Bonus pushed back - should I be annoyed?

Post by PlayingLife » Mon Oct 16, 2017 10:29 am

Thanks for the feedback everyone. I did think I was over reacting a bit - I just have seen too many big companies play games with employees..they have taught me to be over defensive.

NA = North America. Thanks again!

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Re: Bonus pushed back - should I be annoyed?

Post by TravelGeek » Mon Oct 16, 2017 10:31 am

MathWizard wrote:
Mon Oct 16, 2017 10:22 am
I think you are over-reacting. Getting upset will not help you. Consider that the other employees
around the globe were upset about receiving their bonus later.
Isn't everyone working there long term effectively getting their bonus every 12 months, just in different months? So why would those "global" employees have had reason to be upset?

At my company, bonuses and raises have been pushed out further and further; it used to be summer, now they are talking December. Eventually if this pattern continues we'll be back to summer. :oops:

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Pajamas
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Re: Bonus pushed back - should I be annoyed?

Post by Pajamas » Mon Oct 16, 2017 10:32 am

LarryAllen wrote:
Mon Oct 16, 2017 10:29 am
I would keep your annoyance to yourself at work. As an employer I would find it irritating that an employee was complaining about the timing of a "bonus."
I don't like it when they get uppity, either. In fact, I think employees who complain should not be employed at all. If they want to remain employed, they should just accept whatever they are given in cheerful silence. They are not important and can easily be replaced. :beer
Last edited by Pajamas on Mon Oct 16, 2017 10:34 am, edited 1 time in total.

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8foot7
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Re: Bonus pushed back - should I be annoyed?

Post by 8foot7 » Mon Oct 16, 2017 10:34 am

This thread's subject demonstrates a real problem employers have with including variable monies in compensation packages. A bonus is truly only a bonus the first time it is offered because it is new money; after that it starts to feel to the employees as an entitlement, something they should receive every n months, and if it goes away or changes for the worse, it feels like a pay cut. I don't know anyone who feels like their bonus is truly "extra money" instead of money they believe they've earned and are owed because of performance. I know I certainly felt that way as a employee in a large-ish company. Employers don't help when they use bonuses as a tool to enrich an overall package that might be mediocre or otherwise substandard. It's an interesting psychological problem.

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Re: Bonus pushed back - should I be annoyed?

Post by Ron » Mon Oct 16, 2017 10:39 am

I retired from a global company (worked at/for U.S. division, Corporate HQ was in Europe) for 28+ years.

Often times, I myself questioned the "fairness" of what was the local standard in other countries, of which we had divisions in over 140 countries.

As you stated, some "soft" benefits, such as extended maternity leave (for both partners), sometimes lasting for many months seemed unfair - even though I joined the company well after our child was born.

In other cases, some country standards, such as required vacation stated by the company or local tradition for a month (or more) may seem great, but then you have to realize that it is difficult to schedule time off for an extended time the rest of the year. In the U.S. we have more flexibility in vacation scheduling (depending on company).

In France (for instance), if a holiday would fall on a weekend, you did not get a day off on Friday/Monday, unless you would take personal/vacation time; something quite different than we have in the U.S.

OTOH, I was fortunate that I received profit sharing for many years based upon our country/sales region rather than in a global manner. We received a bonus in some years vastly outpacing what others received in other countries. However, that changed in later years where bonus payments were paid out looking at the entire global organization, which resulted in less $$$ over the remaining years before I retired.

Should you be annoyed? Sure - that's just human nature. If you want to have a job which you consider "fair" using common practices in this country, than you will probably limit yourself only to companies that are based in the U.S. along with its customers.

In retirement (10 years thus far), I receive a very generous medical contribution that pays for my/wife's medical with a few $$$ left to carry over each year. I don't fear loss of this benefit because the company is financially strong; however more importantly they are attuned to "social benefits" (since they are Euro based) quite unlike many companies in the U.S. (unless you retired from a governmental/union job).

As they say, "it is what it is"...

- Ron

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Re: Bonus pushed back - should I be annoyed?

Post by Jack FFR1846 » Mon Oct 16, 2017 10:41 am

8foot7 wrote:
Mon Oct 16, 2017 10:34 am
This thread's subject demonstrates a real problem employers have with including variable monies in compensation packages. A bonus is truly only a bonus the first time it is offered because it is new money; after that it starts to feel to the employees as an entitlement, something they should receive every n months, and if it goes away or changes for the worse, it feels like a pay cut. I don't know anyone who feels like their bonus is truly "extra money" instead of money they believe they've earned and are owed because of performance. I know I certainly felt that way as a employee in a large-ish company. Employers don't help when they use bonuses as a tool to enrich an overall package that might be mediocre or otherwise substandard. It's an interesting psychological problem.
My name's Jack. Glad to meet you.

I do feel that each bonus is an extra. Let me qualify that. I don't mean that I work diligently to meet some specific target, hit it and then stand at attention as the bonus is awarded. I mean, I've come to rely on only my base pay and accept any random extra check as gravy. I honestly don't know what each bonus is for at my company. We receive on the order of an extra 10 or so extra checks a year. Some require action (RSUs and ESOP) while the rest are targeted bonuses for particular groups (bonus for all salaried employees, bonus for the entire company, profit sharing for the entire company).
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8foot7
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Re: Bonus pushed back - should I be annoyed?

Post by 8foot7 » Mon Oct 16, 2017 10:51 am

Jack FFR1846 wrote:
Mon Oct 16, 2017 10:41 am
8foot7 wrote:
Mon Oct 16, 2017 10:34 am
This thread's subject demonstrates a real problem employers have with including variable monies in compensation packages. A bonus is truly only a bonus the first time it is offered because it is new money; after that it starts to feel to the employees as an entitlement, something they should receive every n months, and if it goes away or changes for the worse, it feels like a pay cut. I don't know anyone who feels like their bonus is truly "extra money" instead of money they believe they've earned and are owed because of performance. I know I certainly felt that way as a employee in a large-ish company. Employers don't help when they use bonuses as a tool to enrich an overall package that might be mediocre or otherwise substandard. It's an interesting psychological problem.
My name's Jack. Glad to meet you.

I do feel that each bonus is an extra. Let me qualify that. I don't mean that I work diligently to meet some specific target, hit it and then stand at attention as the bonus is awarded. I mean, I've come to rely on only my base pay and accept any random extra check as gravy. I honestly don't know what each bonus is for at my company. We receive on the order of an extra 10 or so extra checks a year. Some require action (RSUs and ESOP) while the rest are targeted bonuses for particular groups (bonus for all salaried employees, bonus for the entire company, profit sharing for the entire company).
I'd love a link to your company's recruiting site... :sharebeer

hightower
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Re: Bonus pushed back - should I be annoyed?

Post by hightower » Mon Oct 16, 2017 11:01 am

PlayingLife wrote:
Mon Oct 16, 2017 10:05 am
BH's,

Today my company sent an announcement out, stating that bonus payouts will be pushed back about a month and a half in 2018, and will remain this way indefinitely. Reasoning provided is that now NA will be aligned in terms of payout timeline with the rest of the globe, and that this is being done in the spirit of fairness.

My immediate reaction was to get very irritated. Last year they cancelled profit sharing permanently and then announced just a week later to the public, that we are the single most profitable company in our sector. Now this new move means they hold on to our earned cash longer. There are many benefits in other regions that are not aligned with NA, such as vacation time in many European countries, and paternity/maternity time, so I find referencing " global fairness" as unjust.

What do you think? Would you be irritated, or do you think I am over reacting?
Sure, be annoyed. I would be too. This is why I don't like having my income tied to bonuses. They are not guaranteed. I personally prefer to be paid upfront for my time at a rate that is fair and reasonable. I'm a physician working as an "optional" right now which means I get paid on a fee for service basis. I put my time in, I get a check. When I was under contract a significant portion of my salary was held up in productivity and quality bonuses, which is great for the company I work for because they can pick and choose when or even if they give me that money. Of course now they want me to sign a contract again and go back to the salary model and I'm really dragging my feet because I don't want to.

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BolderBoy
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Re: Bonus pushed back - should I be annoyed?

Post by BolderBoy » Mon Oct 16, 2017 11:44 am

Aren't bonuses a sort of "gift"? My bonuses were not guaranteed.
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Re: Bonus pushed back - should I be annoyed?

Post by DaftInvestor » Mon Oct 16, 2017 11:50 am

Is your complete salary/benefits package competitive with the industry? If so - why would you be annoyed? If not - then if you see a continued trend of being "unfairly treated" consider looking for another job.
Get with the program or find another program to get with (by finding another job - that's been my motto) - just sitting in a job getting annoyed will get you nowhere.

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Re: Bonus pushed back - should I be annoyed?

Post by oldcomputerguy » Mon Oct 16, 2017 11:54 am

Be glad you're getting a bonus.
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Re: Bonus pushed back - should I be annoyed?

Post by barnaclebob » Mon Oct 16, 2017 11:57 am

Unionize, quit, or shut up.

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Re: Bonus pushed back - should I be annoyed?

Post by Spirit Rider » Mon Oct 16, 2017 11:58 am

8foot7 wrote:
Mon Oct 16, 2017 10:34 am
This thread's subject demonstrates a real problem employers have with including variable monies in compensation packages. A bonus is truly only a bonus the first time it is offered because it is new money; after that it starts to feel to the employees as an entitlement, something they should receive every n months, and if it goes away or changes for the worse, it feels like a pay cut. I don't know anyone who feels like their bonus is truly "extra money" instead of money they believe they've earned and are owed because of performance. I know I certainly felt that way as a employee in a large-ish company. Employers don't help when they use bonuses as a tool to enrich an overall package that might be mediocre or otherwise substandard. It's an interesting psychological problem.
I have seen this demonstrated a lot over many years. Not only do bonuses become an entitlement, but unlike a Boglehead might, many people become financially irresponsible with them

I lost count on the number of people who literally blew their bonuses on new cars, boats, lavish vacations, time shares, etc... Then they started spending the bonus before they received them. They used credit cards and HELOCs to buy the previously mentioned items plus buy more expensive homes, vacation homes and otherwise upgrade their lifestyles.

Finally, they started spending more than their bonus before they received it and even if the entire bonus wouldn't retire the debt, they would still blow some of it. I watched the inevitable train-wrecks occur in 2000-2002 and 2008-2009 when bonuses just disappeared.

Then they lost their jobs and being already being way overextended, many of them lost their homes. Those of us who always lived below our base salary and saved >= 50% of our bonuses, and even shared the same unemployment with them, had very little sympathy.

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Re: Bonus pushed back - should I be annoyed?

Post by TomatoTomahto » Mon Oct 16, 2017 11:59 am

BolderBoy wrote:
Mon Oct 16, 2017 11:44 am
Aren't bonuses a sort of "gift"? My bonuses were not guaranteed.
No, neither were ours, but it is standard practice (in the finance area) for a new employer to "buy out" the unofficially accrued unvested portion of an employee's bonus if they're changing employers. So, they aren't really a gift from out of the blue.

That's one reason that there are dead zones for hiring in this sector. In March/April or so, everyone is fair game. Come November, it can be quite expensive to buy someone out of a "bonus" accrued at a competitor. The employee did work for the competitor, but the employee doesn't want to leave money on the table, so expects to be compensated by the new employer. Potential new employer runs the risk, if they wait for the actual bonus to be awarded at the old job so that they don't have to do the buyout, that the bonus will be larger than previously, and that the employee will no longer be satisfied with the offer. Employee runs a similar risk in the other direction. Bonuses make for interesting gamesmanship.

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Re: Bonus pushed back - should I be annoyed?

Post by Andyrunner » Mon Oct 16, 2017 12:06 pm

PlayingLife wrote:
Mon Oct 16, 2017 10:05 am
What do you think? Would you be irritated, or do you think I am over reacting?
At least you didn't just get a certificate to join the Jelly of the Month Club....

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Re: Bonus pushed back - should I be annoyed?

Post by Jags4186 » Mon Oct 16, 2017 12:08 pm

Games with the bonus and raises were some of the main reasons I left my prior company. I work as a manufacturer rep and the “bonus” is part of my compensation package. Sell X get Y bonus. That was all fine and dandy until November payouts and raises became February payouts, then February payouts became “maybe April” and payouts became subject to overall company performance. And then of course the unannounced cessation of 401k matching on bonus payout. Imagine asking HR what happened to your $2500 worth of 401k match only to be told “we’re doing things differently this year.” I’m sure they thought no one would notice, and I’m sure I’m the only one who questioned it.

Of course the only recourse you have is finding a new job and when they ask why you’re leave you say “I have an opportunity that’s too good to pass up.”

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Re: Bonus pushed back - should I be annoyed?

Post by LarryAllen » Mon Oct 16, 2017 12:58 pm

Pajamas wrote:
Mon Oct 16, 2017 10:32 am
LarryAllen wrote:
Mon Oct 16, 2017 10:29 am
I would keep your annoyance to yourself at work. As an employer I would find it irritating that an employee was complaining about the timing of a "bonus."
I don't like it when they get uppity, either. In fact, I think employees who complain should not be employed at all. If they want to remain employed, they should just accept whatever they are given in cheerful silence. They are not important and can easily be replaced. :beer
I didn't say all that but a bonus is by definition an extra benefit. A "delayed" bonus is better than no bonus.

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greg24
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Re: Bonus pushed back - should I be annoyed?

Post by greg24 » Mon Oct 16, 2017 1:07 pm

Yes, you should be annoyed. But don't let it eat you up.

Maybe you should consider seeing what other job opportunities are out there.

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Re: Bonus pushed back - should I be annoyed?

Post by rgs92 » Mon Oct 16, 2017 1:10 pm

I feel any decent job with a reliable paycheck is something precious and so hard to get that one should kiss the ground for that luxury, no matter what your education level or accomplishments. A job should not be taken for granted. Therefore, I do not think you should be annoyed.

I think one should treat their job as a precious gift to be treasured, appreciated, and treated as a gem to be protected.

There are huge numbers of unemployed former professionals who have great backgrounds and work histories who are without a paycheck with no prospects for one. It helps to imagine oneself in this situation to put any annoyances with a job in perspective.

I would be happy to work for half my former salary with zero benefits. (I was in I.T. at major corporations and have a Masters Degree from a good school and was successful for many years.)

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Re: Bonus pushed back - should I be annoyed?

Post by onthecusp » Mon Oct 16, 2017 1:29 pm

Re: Bonuses going from 'extra' to 'entitlement'. Sure this is true, but companies know this too. In fact many, wittingly or not, encourage this mentality. When people are hired they are told about the great annual bonus with maybe a mention that it is not guaranteed but it has been paid x, y, z and people are getting rich!; rich I tell you! Hell yeah I'm annoyed when that does not work out.

Re: shut up or leave. You know, the 'spirit of fairness' was pushed along either by people in the rest of the world constantly expressing their annoyance at how good the NA employees have it OR by management seeing a chance to delay a payment and get a bigger bonus themselves. Hell yeah I'm annoyed at such things. You could express annoyance at how those employees in Europe get 5 weeks of vacation every year and cheaper healthcare!

It's not easy running a multinational company, but salary, benefits, etc., etc., etc., are different in different places. I get annoyed a lot, getting annoyed rarely helps, but if it results in constructive expression of your expectations relative to the company it can help. Or leave. Walk away power is one of the strongest tools in negotiation. Maintain your walk away power by building up a large emergency fund and keeping your skills up. It helps to be willing to move to a different location. Otherwise you are stuck with whatever they give you.

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Re: Bonus pushed back - should I be annoyed?

Post by informal guide » Mon Oct 16, 2017 1:35 pm

My employer's bonus was pushed back a few years ago from December to January, but I found it actually good for me. First, the taxes owed on it were also pushed back; second, i had a better idea of what my taxable income was going to be earlier in the year for tax planning. Third, I retired early in the calendar year and so the bonus was part of my smaller income in my year of retirement. When I retired, my employer pro-rated my bonus in a way that was completely equivalent to the prior bonus timing, including the bonus in the 401k contribution base and match.

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Re: Bonus pushed back - should I be annoyed?

Post by Christine_NM » Mon Oct 16, 2017 1:41 pm

OP -

Obviously the fairness explanation is hooey, or the global bonuses could be moved up to match NA timing.

The accountants are busy making sure you stay afloat, and the PR dept is doing its best to think up explanations. IOW everyone is doing his job. There's no need to be annoyed. It would be similar wherever you worked.
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Re: Bonus pushed back - should I be annoyed?

Post by flamesabers » Mon Oct 16, 2017 2:15 pm

PlayingLife wrote:
Mon Oct 16, 2017 10:05 am
What do you think? Would you be irritated, or do you think I am over reacting?
I think it depends on your circumstances. Do you have a contract with your employer that states your annual bonus must be paid by a certain date? If a bonus is not specified in your contract (or you don't have a contract at all), the best thing to do is either look for a new job with more favorable compensation or let the matter go.

I think it's fair to assume the rest of your colleagues who get a bonus feel the same way as you. Assuming this change is the result of international employees complaining about unfairness (as opposed to management just finding an excuse to delay paying out bonuses), this may be an indicator your employer is open to improving vacation time, parental leave, etc. for its NA employees in order to ensure "global fairness." If you feel comfortable talking about this with your colleagues, it might be worthwhile to give it a try.

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Re: Bonus pushed back - should I be annoyed?

Post by mrc » Mon Oct 16, 2017 3:15 pm

bonus noun
:something in addition to what is expected or strictly due: such as
a :money or an equivalent given in addition to an employee's usual compensation
b :a premium (as of stock) given by a corporation to a purchaser of its securities, to a promoter, or to an employee

I never counted on bonus pay, although I enjoyed it. Unless your employment agreement includes a date certain, I would let a short delay go. Though I would wonder why and look for the reason. But being annoyed is fruitless.
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Re: Bonus pushed back - should I be annoyed?

Post by flamesabers » Mon Oct 16, 2017 3:20 pm

mrc wrote:
Mon Oct 16, 2017 3:15 pm
bonus noun
:something in addition to what is expected or strictly due: such as
a :money or an equivalent given in addition to an employee's usual compensation
b :a premium (as of stock) given by a corporation to a purchaser of its securities, to a promoter, or to an employee

I never counted on bonus pay, although I enjoyed it. Unless your employment agreement includes a date certain, I would let a short delay go. Though I would wonder why and look for the reason. But being annoyed is fruitless.
For the OP it isn't a delay but rather a permanent change to the date when bonuses are paid out.
PlayingLife wrote:
Mon Oct 16, 2017 10:05 am
Today my company sent an announcement out, stating that bonus payouts will be pushed back about a month and a half in 2018, and will remain this way indefinitely.

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Re: Bonus pushed back - should I be annoyed?

Post by bloom2708 » Mon Oct 16, 2017 3:35 pm

Reminds me of Clark Griswald in Christmas Vacation spending his bonus on the family pool before he got the bonus. His bonus was "The jelly of the month" subscription. :wink:

At my company everyone (mostly) gets a bonus of some amount. If you do not, you are on the way out (performance). So it isn't really a bonus. People come to expect it and that goes against what a bonus is. I certainly like a bonus, but anything (each year) is a true "bonus". I always hoped that the company would not give anyone a bonus one year, just so people start to think of it as a bonus again.

Oh, you mean it isn't "guaranteed deferred compensation?" :moneybag
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Re: Bonus pushed back - should I be annoyed?

Post by renue74 » Mon Oct 16, 2017 3:49 pm

I own a very small business...4 people. Personally, I do give bonuses and its' based loosely on the past fiscal year performance of the company, the input and effectiveness of the employee, and our general company wellness.

Say we had a great year in FY 16-17...but the last 4 months we've lost big chunks of client business....that really doesn't mean I'm going to give bonuses and put my business in peril to keep 3 people happy.

The bonus situation is out of control. I used to give huge bonuses (in my eyes....$10K to $15K bonuses) to employees...sharing a big chunk of the company net income with my people.

It didn't stop them from leaving me and personally after the first year of so, employees felt like it was my obligation to give them huge bonuses. These people's personal lives are more important versus their jobs..no matter how much bonus.

Especially, nowadays, I have millennials all the time who leave to pursue trivial matters....follow a girlfriend to another city, go to Colorado w/o a future job, the reasons are endless.

I always give bonuses around Xmas...because it's a good time of year to share that. They can choose to invest in their retirement, spend on xmas bills, whatever.

If you complained to me about when your bonus was coming, I would definitely take offense and remember the occasion next year.
Last edited by renue74 on Mon Oct 16, 2017 3:51 pm, edited 2 times in total.

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jabberwockOG
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Re: Bonus pushed back - should I be annoyed?

Post by jabberwockOG » Mon Oct 16, 2017 3:50 pm

In any big multinational there are lots of folks whose job it is to reduce employee costs to improve retained earnings/profitability on a year to year basis. Success in this area is designed to increase executive bonuses and compensation.


An easy way to reduce yearly employee costs is via benefits and payroll "engineering". So adjusting timing and amount formulas of payroll, bonus, stock grants, company match, retirement benefits, etc is generally and primarily designed to lower overall costs for that year (even better if it has multiyear effects) regardless of what BS the HR dept announces is the reason for the change. Nothing you can do - lots of big companies do it and will continue to squeeze costs out of yearly payroll and benefits anyway they can especially if lower level employees take the downgrades and don't leave. If you have the marketable skills take the action required to find a better job with a company that pays significantly better.

chevca
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Re: Bonus pushed back - should I be annoyed?

Post by chevca » Mon Oct 16, 2017 4:06 pm

I will simply answer your question with a question.... Should you be annoyed? Will it do any good to be annoyed by this?....

If not, just let it go. :beer

deikel
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Re: Bonus pushed back - should I be annoyed?

Post by deikel » Mon Oct 16, 2017 7:17 pm

The reasoning seems odd though, from a cash flow perspective, what company wants to accumulate all pay outs worldwide on one date ? That makes a huge dent cash flow wise.....this only makes sense if they are trying to move around different fiscal year ends in different countries and streamline reporting...nothing to do with fairness at all...I would question their solvency...
Everything you read in this post is my personal opinion. If you disagree with this disclaimer, please un-read the text immidiatly and destroy any copy or remembrance of it.

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TomatoTomahto
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Re: Bonus pushed back - should I be annoyed?

Post by TomatoTomahto » Mon Oct 16, 2017 9:19 pm

deikel wrote:
Mon Oct 16, 2017 7:17 pm
The reasoning seems odd though, from a cash flow perspective, what company wants to accumulate all pay outs worldwide on one date ? That makes a huge dent cash flow wise.....this only makes sense if they are trying to move around different fiscal year ends in different countries and streamline reporting...nothing to do with fairness at all...I would question their solvency...
My wife and I have worked at 5 very large multinationals. They each announced bonuses on the same day globally, which was a PITA for the presenting managers, but that’s the way it was. One of them did have solvency issues, but there were no bonus shenanigans.

kjvmartin
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Re: Bonus pushed back - should I be annoyed?

Post by kjvmartin » Mon Oct 16, 2017 11:48 pm

8foot7 wrote:
Mon Oct 16, 2017 10:12 am
Sure, be annoyed. Ultimately either accept it or look for new job.
It seems like almost every employer, public and private, is having (or choosing) to trim benefits in some manner. I often wonder how far this road will go.

mouses
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Re: Bonus pushed back - should I be annoyed?

Post by mouses » Tue Oct 17, 2017 5:18 am

Pajamas wrote:
Mon Oct 16, 2017 10:32 am
LarryAllen wrote:
Mon Oct 16, 2017 10:29 am
I would keep your annoyance to yourself at work. As an employer I would find it irritating that an employee was complaining about the timing of a "bonus."
I don't like it when they get uppity, either. In fact, I think employees who complain should not be employed at all. If they want to remain employed, they should just accept whatever they are given in cheerful silence. They are not important and can easily be replaced. :beer
Don't know whether to laugh or cry.

I can see the timing of the bonus being an irritation, although not enough to make a big deal about, but for a allegedly very profitable company to do away with profit sharing would be 1. really irritating and 2. make me wonder if they were in financial difficulty. At the very least, it says they are out to stiff their employees.

If employees have been regularly getting bonuses and profit sharing, those are part of their compensation. If the company is messing with them for any reason other than a lack of profitability, then it is cutting their compensation.

I would start looking around and interviewing. At least that would give you an idea abut how pay is at other companies.

mouses
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Re: Bonus pushed back - should I be annoyed?

Post by mouses » Tue Oct 17, 2017 5:25 am

renue74 wrote:
Mon Oct 16, 2017 3:49 pm

Especially, nowadays, I have millennials all the time who leave to pursue trivial matters....follow a girlfriend to another city, go to Colorado w/o a future job, the reasons are endless.
I'm by no stretch of the imagination a millennial, but I do not view these are trivial reasons. Is an employee to have to deal with a long distance relationship just to keep you happy? Why shouldn't they live in whatever state they want to? And it is much easier to get a job in the new place if they are already there vs. trying to get one when they are states away.

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