AIBU to be upset that my end of year bonus is significantly less than last year?

How was your bonus communicated to you? Places I’ve worked in the past had a one/on/one conversation with the good news and the bad news, and areas for improvement. Is it a US company with an Irish office?

I work in financial services where bonuses are the norm. A couple of pieces of advice:

• It’s fine to ask what the bonus is based on but get a sense of the culture before pushing any further. In my sector pushing for a higher bonus is expected but in yours it might not be.
• Never run your budget based on getting a bonus. If you get one great then you can enjoy it (I usually save half and spend half) but if you don’t get one you won’t be in a mess.
• Salary increases are more valuable than small bonuses because it’s harder to cut salaries than bonuses. So if you have to pick your battles go for the salary not the bonus. If the bonus was much higher or performance related it might be different but based on what you say it’s just a small % of your salary.

A bonus is not about how hard you work, OP, it's about how well the company is doing. Most of us work for organisations that never pay a bonus (certainly if we are in the public or voluntary sectors). Even in the private sector, there are no guarantees and a bonus is not a "given", so I think you should consider yourself extremely fortunate.

If it means your overall renumeration is lower than normal and it's an expected part of the package then yanbu. Though it's probably everyone and not just you

It also sounds as if your working conditions are getting worse - too much work with insufficient time to do it.

I mean, if you have no idea on how the bonus is actually calculated, you can't really complain on why it's lower than last years, that should have been your first port of call, to find out from someone how it is determined.

Did everybody in your company get a 3% bonus? A bonus is just that, a ‘bonus’ so I’m not sure you can really complain unless a specific amount was mentioned in your contract/ salary.

It could be because of the increased NI costs for employers from April next year and the increase in the minimum wage. Companies tend to have a "pot"for bonus payments and that is split among employees. Where I work the bonus while being discretionary is seen as part of the overall renumeration package, we are told the total value of our package in terms of pension, bonus, salary, other benefits all added together.

Oh no, what a heavy secret to carry. Did the company pull through?

I've worked for both tight fisted and more generous with bonuses companies. All were based on how much cash is in the kitty, or how much shareholders have allowed to distribute between everyone.
Have you asked your colleagues if their bonus is same as last year or less?
It might well be that you didn't brown nose enough in the past year.

Perhaps the company hasn't done as well as a whole this year, so bonuses are being trimmed. If you're behind in your work are you less efficient or short staffed?

One place I worked at would usually give the staff a decent bonus each Chrismas but one year it was much lower and everyone was really cheesed off. The financial director and I both knew the disastrous truth that the company was teetering on the brink of bankruptcy, but we couldn't exactly tell them that.

Of course it is, where is relevant to the discussion.

It's like all the threads asking for advice/info re furlough during lockdown. They got cluttered up with folk saying "I'm a [insert occupation], no furlough for me". So what? It adds nothing.

Yes, OP should appreciate that the company pays a bonus. Many companies don’t.

The counterpoint may be that OP has taken a lower base salary with the aim of topping up with the bonus, but that’s a calculated risk.

But OP has clarified that it’s a discretionary bonus and not specified in the contract, so fuck me, they’re bloody lucky and should appreciate it.

If you are behind with your work that might explain why your bonus is lower. If you feel underpaid then perhaps it's time to look for a new job.

Yes.

It does however say it is discretionary. Therefore they can choose not to give one at all. I think be thankful for any bonus at all bearing in mind all the additional costs employers have been put to including pension payments and increased NI. I very much suspect increased overheads have cut into the amounts they can afford to give as bonuses.

I'm facing the same this year, despite working my socks off and doing lots of additional hours (no I don't get paid overtime). My workload has grown as we haven't replaced people who have left, I'm behind, and it's generally been a nightmare. But my bonus will be lower because overall company profits are down slightly!

Have you missed the news where companies need to pay shit loads more in NI contributions? I know of companies making redundancies to find the extra cash. Yours has clearly decided to pay less in bonuses.

Yes. And if you choose to work in a place where you get a discretionary bonus, don't be upset if it fluctuates from year to year.