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Sunday, March 6, 2011

Bonus Behavior

At my company all associates, hourly & salaried, are eligible for bonuses. We have a management by objective (MBO) system, by which goals are set every six months. What percent of these goals you achieve determines what percent of your maximum bonus you receive. Sales has this plus a system to reward for obtaining business with new customers and increasing business with existing customers. As long as the company is profitable during the six month period, bonuses are awarded.

You'd think getting extra money would make people glad right? This period we had 2 people go completely wacko instead.

This first person totally wigged about the payout date. Bonuses are typically paid in February (for July-Dec.) and August (Jan.-June). Generally about 2 months before the expected deadline, my boss issues a schedule for all the steps that must occur in the process, ending with the payout date. The key is each step is dependent on the preceding ones. If they don't occur on time, they push everything back after them, including payout date. If anyone asks my team, we'll tell you we're "predicting" X will be the date. Note, that we don't say it's a guarantee.

My boss received an e-mail from one of the sales staff the day of the initial estimated payout stating he'd heard nothing about his bonus (people receive a detail sheet in advance of the payout showing the amount they'll receive and exactly how it was calculated) and asking about the status. My boss explained that it was delayed and gave the new date. Another sales person who'd been copied on this exchange fired off a testy message (using "Reply All" of course) saying he didn't understand, that he'd committed to pay bills, etc. My boss then (using "Reply All") responded. My boss rarely gets mad, but you could tell from his writing that he was not pleased. He noted that the senior management meeting to determine bonus amounts had been delayed 10 day due to travel, and this was the primary reason everything got behind. He added that approval isn't a switch that magically enables bonuses to be paid. There are calculations to be done for each person that have to be double checked, etc. He also used phrases such as "I hope you realize your comments are unfair",  "I, too, would like to have received my bonus this week, but circumstances prevented this", and about how the bonus process involves all teams adhering to the schedule "Sometimes their priorities are not the same as ours." That was the end of that e-mail exchange.

The other person who wigged is a relative new person. Under the terms of the bonus program, any person not employed the entire 6 month period is entitled to nothing. However, it also says exceptions can be made. This person did indeed receive some bonus money. Was he happy? Oh no. He REFUSED to sign the bonus paperwork because he was upset over the amount he was to receive. The person's manager called my boss and asked what to do. The answer is - have the manager write "Refused to Sign" then date it. I told my boss the person could also send the money to me if he didn't want it. Contrast that with another person on the same team who received a similar bonus because he's also new. He told his manager "Thank You" and was very appreciative.  Which do you think is making a better impression in the company?

Bottom Line: It's a BONUS, meaning it's extra. Say "Thank you" and move on

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