Work Bonus Scheme

[barty9]

My boss last year kindly implemented a bonus scheme which I managed to hit a £1,500 bonus off the back of securing a fairly hefty chunk of advertising circa £65k.
Fast forward to this week and I was expecting much the same sort of scheme but surprise, surprise the conditions have changed and for the same target of £65k it is now proposed i would receive just £250 bonus! Needless to say, I think it is a bit of a joke in terms motivating me to hit £65,000 revenue - I had it in writing for 2018 but now the goal posts have changed dramatically.
I am keen to negotiate with my boss but feel we are quite far apart in terms of last year. Am I bound to my bosses decision?

[Gerald Genta]

Annoyingly that's general how performance related bonuses work. The goal posts are always moved and usually in one direction. Your boss probably didnt know where to set the Target at last year and may think it was achieved relatively easily so has therefore reassessed the position this year.

Edit: To actually answer your question I think you just need to start a discussion with your boss about it and just be honest. Ultimately a bonus is that so unless there is a specific bonus calculation included as part of your contract then you are bound by your bosses decision.

[Maysie]

OP, to answer your question, I think it depends on if your bonus is part of your contractual agreement and what the terms set out therein state. To change the goalposts without letting you know seems rather odd though and is a certain way to get your goat.

This is one of the problems with bonus driven incentives. If they are not of a size to motivate genuine additional effort to achieve they can have the opposite effect and actually demotivate the staff member involved.

Your salary is what 'should' motivate you to do your job, with bonuses awarded for 'extra-over' effort. Unfortunately nowadays so many salaries rely on bonuses to get an artificially lowered salary back to where it really should otherwise be without the bonuses.

[Pitfitter]

A similar thing happened to me a couple of years ago, targets went through the roof with no increase in benefits, I tried hard for three maybe four months then decided to pass on the effort, no increase in base wage either was delivered despite many promises so, in the end I just left.
If your contract doesn’t state bonus earnings you’re at the employers mercy, good luck.

[barty9]

OP, to answer your question, I think it depends on if your bonus is part of your contractual agreement and what the terms set out therein state. To change the goalposts without letting you know seems rather odd though and is a certain way to get your goat.

This is one of the problems with bonus driven incentives. If they are not of a size to motivate genuine additional effort to achieve they can have the opposite effect and actually demotivate the staff member involved.

Your salary is what 'should' motivate you to do your job, with bonuses awarded for 'extra-over' effort. Unfortunately nowadays so many salaries rely on bonuses to get an artificially lowered salary back to where it really should otherwise be without the bonuses.

Sadly bonuses not part of my contract. I did get the terms of my bonus in writing for last year but I have a funny feeling it will be a verbal shafting this year. Bizarrely, I have direct control over this particular project so it could be a yo-yo year in the sense that I won't put the effort in this year in order to reduce the targets for 2020.

[noTAGlove]

Bonuses are discretionary and don’t form part of your contractual terms of employment.

Suck it up, or look for another job.

[Andyg]

Bonuses are discretionary and don’t form part of your contractual terms of employment.

This was certainly my experience.

[Casper]

I would be asking myself whether the extra effort is worth £250 (I presume that's before tax as well)?

[barty9]

I would be asking myself whether the extra effort is worth £250 (I presume that's before tax as well)?

This is correct

[Templogin]

Chill for a year. It's bound to move the other way!

[David_D]

Bonuses are discretionary and don’t form part of your contractual terms of employment.

Suck it up, or look for another job.

Not sure it’s possible to conclude that with certainty without a full analysis of the facts. Many, many bonus schemes are contractual - either explicitly or otherwise.

[Kingstepper]

Presumably you were happy with your salary before the bonus scheme was introduced? Any bonus is just that.

[Boots2]

My niece was selling advertising at a national newspaper/website. She was really good at it, so hauling in big bonuses. They changed the scheme because "it was embarrassing for the other staff". Hang on a minute! The other staff aren't selling the space - surely you want to reward the behaviour that will make the company money?

My niece took her talents elsewhere.

[Kingstepper]

My niece was selling advertising at a national newspaper/website. She was really good at it, so hauling in big bonuses. They changed the scheme because "it was embarrassing for the other staff". Hang on a minute! The other staff aren't selling the space - surely you want to reward the behaviour that will make the company money?

My niece took her talents elsewhere.

Can see other staff POV, they're all contributing to making the company money.

[Mark020]

My niece took her talents elsewhere.

Vote with your feet indeed. I have worked in bonus jobs most of my life and if you feel you're being shafted: go

[IAmATeaf]

Vote with your feet indeed. I have worked in bonus jobs most of my life and if you feel you're being shafted: go

All the companies I've worked for which had/have a bonus scheme it has always varied according to metrics/measures, so unless it was written as a "this is exactly how much you will get" then I'd regard it as normal. If it was fixed don't forget that in a few years you might well be complaining to say it's now not worth as much as it used to be a few years ago?

[barty9]

All the companies I've worked for which had/have a bonus scheme it has always varied according to metrics/measures, so unless it was written as a "this is exactly how much you will get" then I'd regard it as normal. If it was fixed don't forget that in a few years you might well be complaining to say it's now not worth as much as it used to be a few years ago?

I’m happy for the increased target I just think it needs to be realistically attainable. I work in food wholesale so would expect the percentage increase to be minimal in comparison to our profit.

[BSB]

I’m happy for the increased target I just think it needs to be realistically attainable. I work in food wholesale so would expect the percentage increase to be minimal in comparison to our profit.

How much do you have to hit to retain the same level of bonus as last year?

[Kingstepper]

I’m happy for the increased target I just think it needs to be realistically attainable. I work in food wholesale so would expect the percentage increase to be minimal in comparison to our profit.

Could consider that a bonus is just that. Not to be counted on but a reward for better than expected (exceptional even) performance.

[David_D]

My boss last year kindly implemented a bonus scheme which I managed to hit a £1,500 bonus off the back of securing a fairly hefty chunk of advertising circa £65k.
Fast forward to this week and I was expecting much the same sort of scheme but surprise, surprise the conditions have changed and for the same target of £65k it is now proposed i would receive just £250 bonus! Needless to say, I think it is a bit of a joke in terms motivating me to hit £65,000 revenue - I had it in writing for 2018 but now the goal posts have changed dramatically.
I am keen to negotiate with my boss but feel we are quite far apart in terms of last year. Am I bound to my bosses decision?

Wish I’d got 2.3% of the value I added in my career (as well as my salary). I’d be able to afford a new Rolex from WF!

Many employers (slave) drive their employees by applying constant “raising of the bar”. You are expected to do better every year just to stand still.

[wileeeeeey]

You need to explain the initial bonus. Is this something, regardless of contract, that you were expecting?

In my role I have targets with pay outs and bonuses linked to performance but this is fully expected and without hitting a reasonable OTE I would leave immediately. My wife on the other hand has a discretionary bonus linked to other KPIs, some individual and others company wide. She might get a bonus she might not and so never expects one but always hopes for one.

Are you in the first bucket or the second?

If you're in the first negotiate a salary increase, a reduced target, or a different payout. If you're in the second you'll have to suck it up.

[DA56]

Vote with your feet then if it is a deal breaker.

[barty9]

You need to explain the initial bonus. Is this something, regardless of contract, that you were expecting?

In my role I have targets with pay outs and bonuses linked to performance but this is fully expected and without hitting a reasonable OTE I would leave immediately. My wife on the other hand has a discretionary bonus linked to other KPIs, some individual and others company wide. She might get a bonus she might not and so never expects one but always hopes for one.

Are you in the first bucket or the second?

If you're in the first negotiate a salary increase, a reduced target, or a different payout. If you're in the second you'll have to suck it up.

I was given a small pay rise last year to bring my salary in line with the industry norm and then added to that was the bonus structure which was made clear was outside of my contract.

[wileeeeeey]

I was given a small pay rise last year to bring my salary in line with the industry norm and then added to that was the bonus structure which was made clear was outside of my contract.

My bonus isn't in my contract but it's about the same as my basic salary (and fully expected) so if I was told no bonus next year or similar to what you were told I'd be off.

[Kirk280]

What’s a bonus?!

[Chris_in_the_UK]

What’s a bonus?!

3 free camo Nato's?........

[Tahiti]

I’d speak with the boss and talk through your thinking. Hopefully he will do the same in return.

It’s quite typical for goalposts to move, and jumping ship is not always the solution IMHO.

If he doesn’t engage though, there’s arguably more of an issue than the amount of bonus.


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[barty9]

I’d speak with the boss and talk through your thinking. Hopefully he will do the same in return.

It’s quite typical for goalposts to move, and jumping ship is not always the solution IMHO.

If he doesn’t engage though, there’s arguably more of an issue than the amount of bonus.


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I am inclined to agree. I’m going to outline my points by email and see what comes back. Often though if he doesn’t like the content he simply ignores the email which is infuriating!

[Tahiti]

I am inclined to agree. I’m going to outline my points by email and see what comes back. Often though if he doesn’t like the content he simply ignores the email which is infuriating!

If he specifically ignores these emails (and your verbal approach) there is likely more of an issue than goalposts moving IMHO.

Practically speaking though, on moving you have the risk of the grass not being greener. He has the risk of employing a numbnuts and having to spend time and money recruiting.


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[Michael 38]

At my work they have a bonus scheme linked to your personal development reveiw the last few years a few people got it this year it's been changed so that it's practically impossible for anyone to get

[walkerwek1958]

I totally disagree with bonuses, the logic is fundamentally flawed.

You’re paid to do your job fully and well, you either do that and stay in employment or, as my first boss told me at the tender age of 15......’get your coat on and bugger off home’.

Work?.....been there, done that, took me 36 years to realise how much I disliked it!

Almost everyone I speak to who’s still working moans about it, whether they’re young or not so young everyone seems to complain.