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

I'm so sorry you got made redundant, especially so close to Christmas.

Bonuses and pay rises in my company are linked to performance but also how well the company has done. So a higher performer will get a higher % than lower performers, but that may be different from last years % ranges. Private companies have taken a hit with labours budget with the NI rises so some may have to give less this year. Not sure how your company does it but things to consider, it may not be your performance that has dictated it.

Despite having a year busier than last year our bonus has been half of what I got last year as the financial were not as good due to acquisition. Because of the acquisition we had double workload but half the bonus!!!

Yes

The OP works in a role where bonuses are paid. You don’t. Everyone makes choices.

OP of course your company has targets.

I mean this kindly, if you don’t know what they are or what your company’s target or profits are you should find out, and then work out how you can influence them. That’s how you earn a bigger bonus.

That sounds very vague of them. Generally these types of bonuses are intended as an incentive to perform/achieve goals. If you don't know what you need to do to earn the bonus, then I guess you'd have to assume it isn't performance based and therefore is just based on the whim of whoever dishes it out and you can't complain 🤷‍♂️

Important word in your quote OP 'discretionary '. They don't have to give you a bonus at all - it is at their discretion.

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

YAB(a bit)U - accept extra money gladly, look for new job in the new year if you want to

Interestingly you've said you can be paid up to 10% which also means they can also give you zero bonus at their discretion.

Ask someone, HR, your manager, the company intranet. Something or someone somewhere will be able to give you a rationale.

I work in IT and it's our direct line management who decide on amount of bonus awarded if there is a 'bonus pot' available.

Bonus- so a tax free extra money on top of an already decent salary... and you are complaining.

Would you like me to do your job?

It's shit, it really is

Bonuses aren’t tax free.

I’m a pay consultant. You should ask the company to explain why it went down. Don’t do it in a confrontational way, just in a spirit of enquiry.

My best GUESS is that company performance was below expectations and so there was less funding to go around. But we don’t know unless you ask….

Well it’s 25% than last year, so quite a bit less!

Bonus- so a tax free extra money on top of an already decent salary... and you are complaining

Bonuses aren't tax free! I wish.

It's no more free money than any money anyone gets from their employer over minimum wage. My bonus is 25% and so while it is discretionary it makes a huge difference to my income. Ours is a mix of personal and company performance and actually due to company performance it looks like this will be ty first year I don't get the full amount. Hoping for 80% of the max.

Anyway to answer OP - id certainly ask my boss about it.

You've just said you don't know what your employers profits were which baffles me. They are on Companies House, have a look when they are filed.
If profits are less- and it's very likely they are- then the bonus pool will be less as well. Your employer will accrue for annual bonuses through the year and if the pot is smaller obviously the payments will be.
But the very obvious question is talk to your boss, rather than ask here. They will know the financials slightly better than we will.

Your answer is in your post above.
”My contract states a discretionary bonus if up to 10% of my annual salary”
Discretionary and up to are the words i would be focussing on

If they have a Dec year end it could be something six months until they're on companies house though.

So if you don't know how it's calculated or what your profits are how can you complain about it?
Sounds like your gripe is workload related but you are projecting and making assumptions your bonus is lower because you missed your targets.
If it's stated as up to 10% and you got something you can't complain.
I also work in IT and we get a bonus, part is company performance and part is personal performance , we all understand how both elements are calculated

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.

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.

I'm not complaining. I suppose I expected it to be at least the same as last year considering it's increased every year I've been there as my salary has increased. I'm posting because I'm looking for other peoples' perspective about whether I should talk to them about it or not, and wondering how it works for other peoples' companies. I'm new to the field. This is the first company I've worked for that has a bonus scheme. Every other company it's been a Christmas bonus of a couple of hundred euro at the most, not an end of year bonus in my contract as a percentage of my salary.

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!

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.