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

[laylababe5]

I've worked for my company for 7 years. My bonus last year was 4% of my salary. This year I got 3%, even though we've had a particularly hectic year and I feel like I've worked just as hard, if not much harder, than last year. I'm behind on my workload and my requests for help have fallen on deaf ears. I'm being asked why xyz is not done, but when I say I don't have enough hours in the day, I'm told I just have to get on with it like everyone else. I've loved working for this company and have been happy, albeit a bit overwhelmed of late. I'm wondering if I should say something about the reduction in my bonus.

YABU - say nothing and work harder
YANBU - ask why my bonus was so much less this year

How is the bonus calculated?

What @Mrsttcno1 says.

Plus is there mention in contract?

If purely based on business performance overall, it's not been a super year really?

Are profits up?

It's hard to tell really. As a partner for many years I hated the "spontaneous" bonus model as it leads to exactly this reaction. Employees thinking they have done something wrong. When often that was far from the case and more a climate type reaction.

How is the bonus calculated?

Is it based on business success?

Was the business more or less successful in terms of profits than last year?

Or is it based on individual performance, and you say that you are behind on workload

It’s a bonus. It’s not guaranteed. It’s not a set figure and it’s not necessarily going to go up every year either. It’s an added extra, a boost i.e A BONUS.

Next year it might be 5%, it might be 15 or might be 3. Economically it’s been a tough year for many industries. No one is questioning how hard you work.

56. Never had a bonus.

You’ll have to ask someone about the reasoning behind it. But I’ve never worked anywhere where there was a bonus - private sector. I’d be over the moon at a bonus like that.

I imagine it's not the best time financially for many businesses at the moment. Is it just related to the fact there's less profit to share around?

Good lord it’s a gift! Free money. Meant to be a nice thing. Assuming it’s not in your contract YABVU and grabby.

as an employer I hate the sound of this attitude. They’ve given you money out of the goodness of their heart to do something nice and it isn’t enough for you!!?

You’re behind on your work and you still got a bonus, gracefully accept it and don’t question it. A bonus is just that….. a bonus! You got an extra 3% that’s better than nothing

This depends on why, I think. Profits? Greed? Performance?

DH gets bonuses, he's been 15 years at the same company. The formula is supposedly to do with wage, years worked & profits. His bonus should increase every year.

He gets almost half what he used to 5 years ago & we expect even less this year. I suspect it's because they've taken on another partner, who is mind blowingly stingy (& is likely pushing to stop bonuses altogether). I suspect the bonuses will shrivel to an annual token gift card shortly & stop altogether once the big boss retires. It's not ecomincs as business is booming.

We don't rely on it or think about the bonus. Admittedly it's a bit insulting to have it reduce, but in our case we just make fun of it as it's not enough to make a difference to our lives. Right now DH & I are laying bets on the amount 🤣

Ask about it. As you have got less this year maybe ask how you can influence the bonus you get? If it's based on productivity, how can you do better next year or if it's financial how you can help bring in more custom. Depending on their answer there maybe room to discuss why this year's was less, but go into the conversation positive.

Ours is 6% but only if we hit our financial target. It's super clear in our company which financial targets we need to hit throughout the year to earn a bonus. If we don't hit it then we get less of a bonus. If we smash it we get more. Maybe knowing what you need to do to influence the bonuses will help next year

I have been with my current employer for 5 years as part of a very small company. I haven't had a payrise in that time (I'm the accountant and I know how difficult the finances have been). We are in a sector which has been deeply affected by covid (projects which were due to start in 2020 are still pending).
A bonus is an extra, not an expectation.

I knew it wouldn't be long before one of these posters came along. They appear on every thread like this.

Thread re work xmas parties..."I've never worked anywhere that had xmas parties"

Thread re tea & coffee facilities at work..."I've been working since I was 12 years old and no employer has ever provided tea or coffee"

Is it supposed to make the OP feel grateful for what she has?

Its not a race to the bottom

What is the difference between your 4% vs 3% bonus??? Are you paid above minimum wage normally? A bonus is surely, a bonus- not an expected thing???

There'll probably be a post about teachers and nurses not getting bonuses any second now.

Is the truth not acceptable on this site then?

I got made redundant today. Would love to have the problem of 1% less bonus

You don't say how the bonus is calculated. Hectic or not, have you met your targets? Has the company met its targets? Are they being conservative given the increase in employer NI next year?

Never rely on a bonus, or what you will actually get back. DH got a slightly bigger bonus this year, but due to our lovely tax system, actually gets less post tax than last year - go figure!

Well that depends doesn't it? My bonus is in my contract and forms part if my overall compensation package. So it's not a "gift" or given out of the goodness of anyone's heart. It's calculated based on my performance and the company's. So if it was less than expected I would be entitled to know why. You're maybe thinking of a "Christmas bonus" which is given equally to everyone as a gift from the company. I'd be surprised if that is what the OP is referring to as she mentions a %age of her salary.

OP, do your company not explain how your bonus is calculated each year? We get a clear breakdown of how the company has done against targets, and how my performance has been ranked.

Surely 1% isn't "so much less"

Depends how big your salary is I guess!

Thanks all for comments so far. I work in IT earning well above minimum wage. My contract states a discretionary bonus of up to 10% of my annual salary. There is no mention of how it is calculated or what it's based on. We don't have targets or anything like that. I don't know what our profits are this year or how it compares to last year.

If you're behind, I'd grab the 3pct! Bonuses aren't a given.