|
You must first be logged in to edit a post.
If you are not registered, please click "Create Account".
| Posted By |
Message |
RainyDay
LIF Adult
Member since 6/15 3998 total posts
Name:
|
Raise vs bonus
What factors should be used by mgmt to determine if a person should get a raise? What about a bonus?
|
Posted 11/13/17 4:48 PM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource |
hmm
Sweet
Member since 1/14 8012 total posts
Name:
|
Raise vs bonus
a bonus and raise IMO are two very different things for some places. I'm following
|
| Posted 11/13/17 4:50 PM |
| |
|
|
|
Raise vs bonus
I feel bonuses should be based on merit and company performance and a raise should be based on cost of living and your yearly review. It’s unfair if someone works really hard and someone else does the bare minimum or less and gets the same raise and bonus
|
| Posted 11/13/17 5:37 PM |
| |
|
Funkybutt
LIF Adult
Member since 4/15 3049 total posts
Name:
|
Raise vs bonus
During the bad economy in 2008, my company gave us bonuses instead of raises for 3 years. So while it was nice at first to get a $1,000 bonus, I realized that I would rather have the raise bc once they started giving raises again, it was a % off a 3 year old salary.
|
| Posted 11/13/17 8:17 PM |
| |
|
LSP2005
Bunny kisses are so cute!
Member since 5/05 19461 total posts
Name:
L
|
Re: Raise vs bonus
Bonus to me is a metric of how well the company and possibly your division performed. Raise to me is both COLA and how well you did as an individual. I would always want the raise better than the bonus because your next year is based off of the old salary. For higher levels, you can also have RSU which in some companies can be a lot of money, almost half your compensation or more.
|
| Posted 11/13/17 10:14 PM |
| |
|
Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
Name:
|
Re: Raise vs bonus
My DH is executive level, in his company he has to write yearly performance reviews for everyone who reports to him. He also has to score their performance using a rating system of fails to meet expectations, meets expectations, and exceeds expectations. There is usually a general raise increase across the company, let's say 4%, BUT not everyone will actually get the 4%. Depending on the performance review someone might get less, more, or exactly that.
With bonuses, they are given once a year and are also tied to performance. Each department gets a pool of money and the Director/VP decides how to divide that pool of bonus money up among everyone in the department. Depending on your performance in the company that year you might get the same amount as you did in previous years, get less, or get much more. In DH's company there have been people who have lost their bonus entirely and some who have gotten as high as a 15% or more bonus at the end of the year.
At the end of the day, both the raise and bonus are tied to performance as they should be IMO. Nothing is guaranteed, you have to work and prove yourself to do well financially. The less you put in, they less money you'll get.
ETA - The pool of money available for bonuses in my DH's company fluctuates, it's tied into how well the company performed that year. When the company is booming, the bonuses go up, when it's a down year, the bonuses also go down.
Message edited 11/14/2017 8:34:08 AM.
|
| Posted 11/14/17 8:31 AM |
| |
|
evrythng4areason
And then there were 4
Member since 1/10 5224 total posts
Name:
Kayla
|
Re: Raise vs bonus
Posted by Hofstra26
My DH is executive level, in his company he has to write yearly performance reviews for everyone who reports to him. He also has to score their performance using a rating system of fails to meet expectations, meets expectations, and exceeds expectations. There is usually a general raise increase across the company, let's say 4%, BUT not everyone will actually get the 4%. Depending on the performance review someone might get less, more, or exactly that.
With bonuses, they are given once a year and are also tied to performance. Each department gets a pool of money and the Director/VP decides how to divide that pool of bonus money up among everyone in the department. Depending on your performance in the company that year you might get the same amount as you did in previous years, get less, or get much more. In DH's company there have been people who have lost their bonus entirely and some who have gotten as high as a 15% or more bonus at the end of the year.
At the end of the day, both the raise and bonus are tied to performance as they should be IMO. Nothing is guaranteed, you have to work and prove yourself to do well financially. The less you put in, they less money you'll get.
ETA - The pool of money available for bonuses in my DH's company fluctuates, it's tied into how well the company performed that year. When the company is booming, the bonuses go up, when it's a down year, the bonuses also go down.
This is similar to how it works at Dh's job, but the bonus pool is a bit larger-his first year he received 15% of his salary as a bonus, plus a 3% raise, and last year he received 19% as a bonus and a 4% raise. However, these were poor years. When he signed on, he was told that in good years (this year was a good year), bonus could be up to 40% of salary-So if your base is 100, bonus could be up to 40 for a total of 140.
|
| Posted 11/14/17 9:03 AM |
| |
|
NervousNell
Just another chapter in life..
Member since 11/09 54921 total posts
Name:
..being a mommy and being a wife!
|
Re: Raise vs bonus
My bonus is actually a form of a commission I guess- it is based on how we do as a business unit each quarter. We have a set GP goal each quarter- if we meet it we get x% of it, if we don't we get less. If we overachieve we get more
Not a true 'bonus'- more of an incentive to drive more GP within the group
|
| Posted 11/14/17 9:17 AM |
| |
|
Jacquelina
LIF Adolescent
Member since 10/11 767 total posts
Name:
Jacqueline
|
Re: Raise vs bonus
Posted by Hofstra26
My DH is executive level, in his company he has to write yearly performance reviews for everyone who reports to him. He also has to score their performance using a rating system of fails to meet expectations, meets expectations, and exceeds expectations. There is usually a general raise increase across the company, let's say 4%, BUT not everyone will actually get the 4%. Depending on the performance review someone might get less, more, or exactly that.
With bonuses, they are given once a year and are also tied to performance. Each department gets a pool of money and the Director/VP decides how to divide that pool of bonus money up among everyone in the department. Depending on your performance in the company that year you might get the same amount as you did in previous years, get less, or get much more. In DH's company there have been people who have lost their bonus entirely and some who have gotten as high as a 15% or more bonus at the end of the year.
At the end of the day, both the raise and bonus are tied to performance as they should be IMO. Nothing is guaranteed, you have to work and prove yourself to do well financially. The less you put in, they less money you'll get.
ETA - The pool of money available for bonuses in my DH's company fluctuates, it's tied into how well the company performed that year. When the company is booming, the bonuses go up, when it's a down year, the bonuses also go down.
This is similar to how it works at my company - I work for a Fortune 500. The yearly raises are based on your review and company performance, but cap at around 4%. Unless you get a promotion, then that raise is based off the grade level of that position/average salary of colleagues with the same grade level, etc. Bonus's are dependent upon company performance, but are also a combination of your grade level, department and performance rating. Max bonus payout is also capped upon hire of a particular position.
|
| Posted 11/14/17 9:20 AM |
| |
|
dianadrw
LIF Adult
Member since 5/06 2092 total posts
Name:
Me
|
Re: Raise vs bonus
I think they are both performance related and related to how the company does. I work for a non-profit so we don't have bonuses, just annual raises depending on how we have done that year. DH gets both a raise and an annual bonus.
|
| Posted 11/14/17 9:25 AM |
| |
|
bunnyluck
LIF Adult
Member since 1/14 3196 total posts
Name:
|
Raise vs bonus
It depends on the company.
Most companies are moving away from a "rating system" these days and factor your individual performance and situation to against many factors:
Their performance
Their performane vs their planned performance
Your performance
Your geography and COL
Where you already fall in a given salary band (if your close to maxing out, your raise will be less, regardless of performance, basically without a promotion you couod be screwed).
What the "market" would pay for your skill set
How much pool there is to be shared
Your level
Tenure with firm
Education and degrees
Etc.
Bonus is typically a percentage the pool your business unit is given and based on performance, tenure with firm. Could be contigent based too.
Message edited 11/14/2017 11:23:39 AM.
|
| Posted 11/14/17 11:22 AM |
| |
|
mommy2B3
2 boys 2 girls!!!!
Member since 7/08 3324 total posts
Name:
M
|
Re: Raise vs bonus
Posted by Hofstra26
My DH is executive level, in his company he has to write yearly performance reviews for everyone who reports to him. He also has to score their performance using a rating system of fails to meet expectations, meets expectations, and exceeds expectations. There is usually a general raise increase across the company, let's say 4%, BUT not everyone will actually get the 4%. Depending on the performance review someone might get less, more, or exactly that.
With bonuses, they are given once a year and are also tied to performance. Each department gets a pool of money and the Director/VP decides how to divide that pool of bonus money up among everyone in the department. Depending on your performance in the company that year you might get the same amount as you did in previous years, get less, or get much more. In DH's company there have been people who have lost their bonus entirely and some who have gotten as high as a 15% or more bonus at the end of the year.
At the end of the day, both the raise and bonus are tied to performance as they should be IMO. Nothing is guaranteed, you have to work and prove yourself to do well financially. The less you put in, they less money you'll get.
ETA - The pool of money available for bonuses in my DH's company fluctuates, it's tied into how well the company performed that year. When the company is booming, the bonuses go up, when it's a down year, the bonuses also go down.
This is similar to my DH. He honestly hates having to “grade” people though. Meets/meets is 12%, meets/exceeds is 15% and exceeds/exceeds is 18% for his company, but they get stock options with a separate bonus if the company does very well ((only certain tiered employees, the step down from my DH is the first for that option)).
|
| Posted 11/14/17 11:24 AM |
| |
|
bunnyluck
LIF Adult
Member since 1/14 3196 total posts
Name:
|
Re: Raise vs bonus
Posted by mommy2B3
Posted by Hofstra26
My DH is executive level, in his company he has to write yearly performance reviews for everyone who reports to him. He also has to score their performance using a rating system of fails to meet expectations, meets expectations, and exceeds expectations. There is usually a general raise increase across the company, let's say 4%, BUT not everyone will actually get the 4%. Depending on the performance review someone might get less, more, or exactly that.
With bonuses, they are given once a year and are also tied to performance. Each department gets a pool of money and the Director/VP decides how to divide that pool of bonus money up among everyone in the department. Depending on your performance in the company that year you might get the same amount as you did in previous years, get less, or get much more. In DH's company there have been people who have lost their bonus entirely and some who have gotten as high as a 15% or more bonus at the end of the year.
At the end of the day, both the raise and bonus are tied to performance as they should be IMO. Nothing is guaranteed, you have to work and prove yourself to do well financially. The less you put in, they less money you'll get.
ETA - The pool of money available for bonuses in my DH's company fluctuates, it's tied into how well the company performed that year. When the company is booming, the bonuses go up, when it's a down year, the bonuses also go down.
This is similar to my DH. He honestly hates having to “grade” people though. Meets/meets is 12%, meets/exceeds is 15% and exceeds/exceeds is 18% for his company, but they get stock options with a separate bonus if the company does very well ((only certain tiered employees, the step down from my DH is the first for that option)).
The "Rating system" is terrible as a decision maker and compensation communicator. It becomes very difficult on a high performing team because it typically has to be done on a bell curve...basically no matter how great your people perform HR and Senior leadership only allow a certain percentage of highest performers and lowest performers.
|
| Posted 11/14/17 11:32 AM |
| |
|
chilltocam
LIF Adult
Member since 11/11 9141 total posts
Name:
|
Re: Raise vs bonus
Posted by bunnyluck
Posted by mommy2B3
Posted by Hofstra26
My DH is executive level, in his company he has to write yearly performance reviews for everyone who reports to him. He also has to score their performance using a rating system of fails to meet expectations, meets expectations, and exceeds expectations. There is usually a general raise increase across the company, let's say 4%, BUT not everyone will actually get the 4%. Depending on the performance review someone might get less, more, or exactly that.
With bonuses, they are given once a year and are also tied to performance. Each department gets a pool of money and the Director/VP decides how to divide that pool of bonus money up among everyone in the department. Depending on your performance in the company that year you might get the same amount as you did in previous years, get less, or get much more. In DH's company there have been people who have lost their bonus entirely and some who have gotten as high as a 15% or more bonus at the end of the year.
At the end of the day, both the raise and bonus are tied to performance as they should be IMO. Nothing is guaranteed, you have to work and prove yourself to do well financially. The less you put in, they less money you'll get.
ETA - The pool of money available for bonuses in my DH's company fluctuates, it's tied into how well the company performed that year. When the company is booming, the bonuses go up, when it's a down year, the bonuses also go down.
This is similar to my DH. He honestly hates having to “grade” people though. Meets/meets is 12%, meets/exceeds is 15% and exceeds/exceeds is 18% for his company, but they get stock options with a separate bonus if the company does very well ((only certain tiered employees, the step down from my DH is the first for that option)).
The "Rating system" is terrible as a decision maker and compensation communicator. It becomes very difficult on a high performing team because it typically has to be done on a bell curve...basically no matter how great your people perform HR and Senior leadership only allow a certain percentage of highest performers and lowest performers.
Not to mention when the person doing the rating is good friends with one of the people being rated so it becomes a known thing that the friend is always going to receive the highest "grade". Very bad for moral (and glad I don't work somewhere like that anymore)
|
| Posted 11/14/17 12:09 PM |
| |
|
Potentially Related Topics:
Currently 484592 users on the LIFamilies.com Chat
|
Long Island Bridal Shows
|
