Quick story: the first time I received a bonus check in my career, I cried because it felt like I hit the jackpot. The second time I received a bonus check, I felt jilted. It didn’t seem big enough — even though it was more money than the previous year.
I look back on that story and I am struck by a couple of things.
- Never assume your HR representative fully understands the programs she administers. [Yeah, I get it now.]
- Never believe your employees fully understand the basic tenets of how and why they are paid.
- Never stop communicating about performance and compensation.
I don’t envy you HR professionals who are out there, right now, in the middle of the annual compensation cycle. Frank Roche offers a communication document for your managers. Print it out while it’s still free — he could charge tons of money for this awesome advice.
{ 7 comments… read them below or add one }
Laurie, I’d be lucky to be in the same bookstore as you. My stuff will be in the Bargain Bin at the front of Barnes & Noble, you know, the spot where it almost looks like they don’t care if you steal it because they have it in the entry doors? You have a bestseller coming.
LOL…thanks for the shoutout. And that is a powerful thought about bonus checks…that is exactly how it goes….from jackpot to bummer in one cycle. Wow.
I once had an HR manager who didnt actually know that HR stood for Human Resources. She just thought it was an odd coincidence. So go figure when she had no clue about any of the programs or the effects of them.
Then again, it for the WORST. COMPANY. EVER, so go figure.
As usual, a truly insightful post! I have managed hundreds of people over the years – all of which have been on incentive or bonus plans. Your post is spot on. There is an entitlement mentality that has become rampant in the workplace. If companies aren’t careful and communicating their philosophy around comp on a consistent basis,bonuses become something employees expect, not something that they expect they have to earn.
@Frank It would be nice if we regularly communicated the basic ways that Americans are paid. Also, I hate the silo structure in HR. I was in recruiting… why would I need to know the basics of comp…? You know who taught me about the basic principles behind bonuses? A cost accountant, who was my client and friend. I was 23 years old and so naive. Lesson to HR: be friends with finance.
@Joe NO I’m pretty sure that I worked for the WORST COMPANY EVARRRRR!
@George Well in some ways, a bonus in contingent upon things you can control (your performance) and your company’s overall performance — where you only have so much to contribute. It gets confusing, which is why I tell people, “It’s at risk. Don’t expect anything and you won’t be disappointed.” My previous company had a history of paying out well above 100%, so when people hit the 100% target mark, they were disappointed. Ugh, so frustrating.
How sad is it that no matter where you work you’ll always see the same complaints.
@RachL “Wherever you go, there you are.” That’s HR in a nutshell.
@laurie
Unless you worked for Kmart, then I doubt it. Worst year of my working life.