Thread List
First Page Previous Page Page 127 / 308 Next Page Last Page
Subject#Latest
1 07.07.09
12 07.07.09
5 07.07.09
22 07.07.09
1 07.07.09
12 06.07.09
22 06.07.09
16 05.07.09
6 04.07.09
2 03.07.09
4 03.07.09
6 03.07.09
4 02.07.09
1 02.07.09
3 02.07.09
51 02.07.09
3 02.07.09
2 02.07.09
7 02.07.09
3 01.07.09
13 01.07.09
5 01.07.09
2 30.06.09
4 30.06.09
12 30.06.09
2 30.06.09
8 30.06.09
1 29.06.09
5 29.06.09
11 29.06.09
13 29.06.09
18 27.06.09
5 27.06.09
2 26.06.09
4 25.06.09
3 24.06.09
3 23.06.09
4 23.06.09
10 22.06.09
13 22.06.09
80 22.06.09
20 19.06.09
6 19.06.09
8 19.06.09
6 18.06.09
14 18.06.09
5 18.06.09
5 18.06.09
10 17.06.09
19 16.06.09
First Page Previous Page Page 127 / 308 Next Page Last Page

what is concept of Bonus ?

 
#1 what is concept of Bonus ?
20/06/2009 11:48

consultant

hello..i keep hearing "bonus" on this forun quite a lot...what is bonus exactly ? I am interested more from IT consulting perspective ?

Do all people (from analysts, consultants, managers, SMs etc) eligible for bonus ? Does company decide bonus or do we need to demand it ? How do I know if I am missing bonus ?

sorry to be too naive...but I really dont understand this quite well.

Thanks in advance.

Reply  Quote   
 
#2 RE: what is concept of Bonus ?
20/06/2009 17:49

boaby to consultant (#1)

In Accenture, it is something you generally demand from your career counsellor and will usually be awarded if you have at least a "consistent with" rating. You have to be quite forceful to be granted it, and the amount you get will usually be dependent on both performance and the level of aggression you show in asking for it. In general you can expect 20-60% of base salary.

HTH

Reply  Quote   
 
#3 RE: what is concept of Bonus ?
20/06/2009 21:45

anon to boaby (#2)

Bonuses are only for managers and senior managers, depend on performance of the firm (i.e. may not be granted in a given year) and require you to have a CW or above.

There is a percentage by level by rating you could theoretically get, but they key number is the % the bonus pool is funded by (last year was 125%, so you would have got 125 % of the % bonus you were eligible for).

Your CC plays no part in it at all and you cannot lobby for a bonus, decisions are not made on an indiivdual basis.

Reply  Quote   
 
#4 RE: what is concept of Bonus ?
21/06/2009 20:12

Hedgie to anon (#3)

Bonus is around $500,000.00

Reply  Quote   
 
#5 RE: what is concept of Bonus ?
22/06/2009 13:50

Bob to Hedgie (#4)

A bonus is an annual payment, normally paid at the end of a company's financial year, over and above your base salary. It make possible the concept of "variable pay" whereby employees; remunearion will vary depending on selected factors.

Typically people talk about their bonus in terms of %age of salary. However, the calculation method for a bonus in a specific year can be a bit more complex. For example, at my current employer, the company performance in the year determines the size of the bonus pool. In a dire year, the bonus pool might be 0% funded, which means no bonuses for anyone. In a good year, it would be 100% funded.

Employees will be told what %age of their salary they are eligible for - and this can be further varied by performance rating. For example, a Manager level employee, with an Above Average rating could be eligible for 10% bonus. But they would only get 10% of their salary if the bonus pool was 100% funded.

The %age that an employee is eligible for typically increases with seniority as the theory is that the more senior you are the more you can influence the performance of the company (not really fair to reward lowly analysts with a bonus when the company has a stonking year and penalise them for a bad year).

I think typically bonuses start being paid at Manager level. And I think there either is or isn't a bonus structure in place at a company - not aware of individuals being able to negotiate a special bonus plan just for themselves (imagine this would be a bit too onerous to manage).

Reply  Quote   
 
#6 RE: what is concept of Bonus ?
22/06/2009 14:28

Cynic to Bob (#5)

"Bonus" is what many people rely on as part of their overall income when they accept a job in order to make sure they can cover bills and not fall behind on their savings plan, but which many companies have a habit of not paying (or underpaying), blaming it on anything from 'The Recession' right through to 'Your Individual Performance'.

It is also something that companies use to make an overall remuneration package look good when they are selling you a job, but which they then later yank out from under your feet, again using whatever 'explanation' they can reasonably get away with.

Reply  Quote   
 
#7 RE: what is concept of Bonus ?
22/06/2009 15:59

rollercoaster to Cynic (#6)

Bonus is the carrot that is used as a stick.

Reply  Quote   
 
#8 RE: what is concept of Bonus ?
22/06/2009 16:24

Cynic to rollercoaster (#7)

Very nicely put, rollercoaster!

Reply  Quote   
 
#9 RE: what is concept of Bonus ?
23/06/2009 07:14

Word mother to Cynic (#8)

You accept a job. Your new employer says your bonus expectation is 25 - 50% of base pay. And so you accept base pay 10% lower than the going market rate, figuring at worst you'll be an average performer compared to your peers although more likely you'll be a high performer.

Despite actually turning out to be a high performer, your bonus is always about 30%. Or at least this is how it is presented to you. When in the first year the money appears in the bank you think there must have been a mistake. But no, you didn't read the small print that no one pointed out to you - your bonus is inclusive of employer's social security and is 11% less than advertised.

Is it any wonder so many people are disaffected with Corporate and partners at this firm?

Reply  Quote   
 
#10 RE: what is concept of Bonus ?
23/06/2009 08:58

anon to Word mother (#9)

which firm is that?

Reply  Quote   
 
#11 RE: what is concept of Bonus ?
23/06/2009 21:27

archoin to anon (#10)

Sounds like it could be LEK from when I worked there, but there are a few others with similar approach. Usually works out to the same total whichever way you cut it.

Reply  Quote   
 
#12 RE: what is concept of Bonus ?
23/06/2009 22:11

Word mother to archoin (#11)

No - PA, of course

Reply  Quote   
 
#13 RE: what is concept of Bonus ?
26/06/2009 10:53

PA beyond the M25 to Word mother (#12)

"But no, you didn't read the small print that no one pointed out to you - your bonus is inclusive of employer's social security and is 11% less than advertised."

PA operates in more than the UK you know, the bonus pool should absolutely be calculated at the gross amount and then the taxation laws of each country applied when paid. As it is in the UK, both personal and company NI is payable on the amount.

Not that hard to work out really, it has to be paid whether they show it on your bonus slip or not and the amounts would be the same.

Reply  Quote   
 
#14 RE: what is concept of Bonus ?
26/06/2009 20:34

Worzel to PA beyond the M25 (#13)

No doubt social security contributions need to be paid. That is not the point.

Base pay does not include employers social security contributions. Therefore it is wrong - deceitful - to express bonus inclusive of said contributions as a percentage of base pay. Would it not be fairer to present the bonus net of these contributions as base pay? Certainly it would be more ethical to spell this out during the recruitment process and stop presenting an inflated figure.

Yes, the bonus pool should be calculated gross of such amounts - that's the company's expense. It is absolutely not the award to the employee. This is not just easy to work out - it's is bleeding obvious. Make sense?

Reply  Quote   
 
#15 RE: what is concept of Bonus ?
27/06/2009 09:48

JE to Worzel (#14)

Well, you don't, that's for certain.

Reply  Quote   
 
#16 RE: what is concept of Bonus ?
27/06/2009 10:46

Dongle to JE (#15)

Just to spell it out for you, JE (sorry - it's not a PP deck)

Employee's base pay = net pay (ie cash) + personal tax (paye) + employees social security contributions

PA bonus award = net pay (ie cash) + personal (tax) + employees social security contributions + EMPLOYERS social security contributions

Actually, I won't spelt it out further. I'm sure you can spot why it is misleading to divide the bonus award by base pay when presenting the bonus as a percentage of net pay. I'm sure you might even be able to work out the fair way to present the bonus award and the percentage of base pay to potential hires and employees.

Reply  Quote   
 
#17 RE: what is concept of Bonus ?
27/06/2009 18:04

duh to Dongle (#16)

So it is "unethical" for the company not to inform you in advance of the rules of taxation of the country you live in and have probably paid tax in for your entire working life.

I wonder if there's a legal case for negligence?

From PA that is, it must be gutted to have you.

Reply  Quote   
 
#18 RE: what is concept of Bonus ?
27/06/2009 19:35

Jesus to duh (#17)

No, mate. It's unethical to inflate the bonus figure with taxes that you as an employee don't pay.

Reply  Quote   

Top of Page

ThreadID: 55715

Advertise
Your Jobs!