About pay review and bonus at work

[frankentall]

Been at my job just over a year and so asked about pay review. Apparently these are given in July - so I missed last July as was too new and have to wait until this July.

My offer said 10% bonus. Similarly apparently no bonus until July BUT also not mentioned - it's not necessarily 10% - or indeed anything at all.

I guess I should have made more detailed enquiries at the time.

My contract just says "Your salary will be reviewed annually, and you will be notified in writing of any change to your salary" - it doesn't mention having to wait more than a year for the first review,
and it doesn't mention bonus at all except to say it won't be paid if I have given notice.

I've talked to my boss (and at his request to my boss's boss) both say that's just the way things are done and there's nothing they can do.

I am not in a Union and we don't have salary transparency.

I took a pay cut to do this job as it's something I wanted to do, but very much on the expectation of a 10% bonus. AIBU?

All sounds pretty standard to me.

Entirely normal to have an annual review cycle, although as PP said much more usual to be end of year / end of April.

Is you bonus contractual and have you fulfilled the demands? All contractual bonuses have ben been withheld in my company this year as the criteria haven't been met.

I'm a pay consultant. Everything you describe is completely normal

It's all very standard. Of course pay reviews within most businesses are carried out at a setpoint, else it would never end.

Why would you accept a job without properly reading and understanding the contract of employment, and querying any discrepancies before signing?

Have you come from the public sector, OP? Everything you're experiencing is normal and ime in the private sector you should never count on bonuses or annual pay rises as it's not unusual for neither to actually happen, unless they're contractual. For example, I have a contractual "annual pay review" but that doesn't actually guarantee I'll get a raise at that point.

No, private sector my whole career and previously a contractor. This has all been brought into sharp focus by inflation and costs of living.

A bonus is always based on individual/company performance though. Otherwise it would be your salary.

And also fairly standard to get a pay review at a certain time of year with everyone being reviewed at the same time.

I think you've been a bit naive to think the 10% was guaranteed or that your annual pay review would be bang on 1 year.

I agree with everyone else, I'm not sure what you're questioning as everything is completely normal.

Bonus is discretionary and as others have said will be based on certain metrics. Ask for the bonus plan rules/criteria if you're not sure. At my company we have a 10% bonus level, but that's 'target', i.e. if performance metrics are reached of X,Y,Z then 10% is paid out. Although 10% is target, the actual payment may be more or less depending on if we under/over achieve (there is a minimum for any bonus to be paid out).

All standard. Foolish to rely on a bonus as part of your salary.

You've been very fortunate not to encounter this before! I used to work for a similar private org. – guaranteed bonuses for up to 20% (and at least 10% even for the worst performers!) and an annual pay increase of inflation + an extra 1-5% depending on performance. It was my first job and I thought it was fairly normal – it was very hard to leave behind once I realised it wasn't!

Having said that, I bet they don't operate that way any more. Things have changed dramatically for businesses as well as for workers and there just isn't the room for that kind of thing these days, depressing as it is.

I've had a number of bonuses over my working career. Certainly not every year. I work hard and have had to step up/step in a number of times for different employers. Where I work now is a listed company and there is usually an annual pay rise - we got it early last year to help with CoL. There is an incentive scheme for some grades. What that pays is dependant on company performance and it's a share award.

Presumably you have objectives and an appraisal? If you've exceeded your objectives that's the time to ask for a bonus.

I think most companies wouldn’t give a pay rise until the first pay review date after you’ve been there for a year.

I assume your salary has also been reviewed annually, in that it was set in 2023 and will be reviewed in July 2024.

And bonuses are discretionary. 10% is probably typical but will likely depend on yours and company performance in the year.

It’s annoying but you’ve just misunderstood how it works and didn’t clarify. I don’t think the company have done anything wrong.

Sounds like you'll have an appraisal and pay review in July, I'd be inclined to wait until then and see what's said about bonus. You might well get one, but they won't tell you then as they'll need to do their budgeting for the entire financial year. And review your performance.

They won't want piecemeal pay reviews throughout the year obviously - that'd be a nightmare.

Were you still in a probation period when the last July pay review happened? If they were doing percentage pay rises across the board then it's a shame you missed out if you were a few months in. You could mention this in your July pay negotiations if necessary

fairly standard to have a pay review annually. but the whole business usually does it at the same time.

in my place we start the review process in February, decisions are made in March, bonuses paid in march payday and then pay rises effective 1 April.

if someone starts in January they will be on probation so they won't get a review. same if on notice. no bonus. no payrise. we typically see that people leave after 1 April if they aren't happy with their pay.