Bonus based on pro rota basis

[Whattodo1111]

Hi,

name changed for obvious reasons.

i need opinions. I work for a company which is salary based but we get a bonus quarterly if we hit target. We currently have an end of year target, the office is split into 7 teams but we have to hit the target before we get a bonus (it’s not team based, as long as we hit the target as an office we get a bonus).

I have worked for this company for 13 years. I have been part time for the last 2 years since i had a baby.

the incentive/bonus is pro rota based. So I as a part time employee would get half a full time employee.

my problem I am having is. This is just an example of the figures this month:

person 1: £60k (full time employee)
person 2: £38k (this is me, part time
3 days a week)
person 3/4/5: £8k or under (all full time)
person 6/7 £2k (full time)

i can’t help but feel a little annoyed that I have made that much money for the company yet I will get half the incentive pay out the FTEs will get. I have got the most experience on the team, however I don’t feel like these payouts should be reflected on our hours.

do you think I have any grounds to go on in mentioning this to my line manager? Just want to know thoughts before I think about it

A difficult one. You could argue it's equally unfair if the full-timer generating 8k gets the same as the full-timer generating 60k, but that depends on what the bonus reflects. I am assuming other things go on besides sales - the kind of activities that perhaps don't get lauded but which are needed to keep the show on the road.

If the bonus reflects that you as a department have worked successfully as a team for a month (of which hitting targets is the measure) then it's reasonable to make it pro-rata because some have 'given up' the whole of their life to it, and others only 2/3 or 1/2 etc.

If it's figures driven then it should be allocated based on how much you have generated regardless of hours worked.

If that's how it works and you knew it did when you took the job then I dont think you have grounds to challenge it. The way I'd see it, I'd ask myself am I happy with what I'm getting, based on my part time hours. And if I am then that's good enough, rather than thinking about what others are getting.

Is that income generation the sole thing that you all do, and do you all have an equal chance?

The sales team where I work has people who bring in less revenue because they go after the really tricky new business - whereas some people are “milking” previous wins with repeat orders - they haven’t actually done any active selling. Not in a cheating way, just how the business works. It’s hard to explain without being more outing than I’m prepared to be. But it’s recognised (in a similar pro rata bonus) that some people have easier accounts than other to sell in to.

It's how my work's always worked. I think it's fairer than not pro rating it. Otherwise you get ridiculous situations like Liz Truss holding a job for about 10 days and getting a lifetime stipend off the back of it.

If one of your full time colleagues took a sabbatical - say 2 months, 6 months, 11.5 months - how would you feel about them still getting the full bonus? I suspect the answer would depend on how long the sabbatical was. I know it's not exactly the same thing but I do think it's similar enough to be relevant. To me there is a logic in pro rating rather than applying a blanket policy that everyone should get it in full.

If it is as you describe then it is a badly designed incentive scheme. However you accepted the terms of the scheme when you joined, and they can't (and shouldn't) make an exception for you as that would be unfair for other part time employees.

The issue isn't the pro-rata, it's the basis that everyone's bonus is a fixed amount. In a good scheme the bonus would be a % of your salary. Since your additional experience and history with the company should be reflected in your salary (as well as your target), even part time you could get close to what the full time employees with less experience get.
Ideally, of they really want it to be motivating and fair, it should also have a individual target component rather purely a national target.

It's a shit policy, but it's the policy. You have to suck it up or suggest to your company that any bonus (and the pertinent word here is bonus) be done on an individual basis. Do your homework, see how it works in other companies (cost to administer, etc) and take the info to them, showing that you are keen to create solutions, not just dump problems
Or find another job

Do you all do the same job?

Are you and fte on equivalent of the same salary? Bonuses tend to be discretionary so it is hard to challenge as some element of subjectivity unless based on specific criteria.

As others have said, do you all have the same role and potential for generating money for the company? I can't imagine a business paying someone a full time salary to generate income and being happy with them only making 2K a month, if that is their main goal.