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Call me a cynic, but annual expected-not-guaranteed bonuses are mostly just retention tools right? You get paid a bonus and suddenly you’re much happier and les
by mcintyre1994 6y ago
Call me a cynic, but annual expected-not-guaranteed bonuses are mostly just retention tools right? You get paid a bonus and suddenly you’re much happier and less inclined to change jobs. If that inclination comes back later then you have to weigh the loss of the proportion of your bonus earned so far in the downsides of leaving, since the bonus is never paid in part if you leave during the year.
- burntoutfire 6y agoThat's how I see them as well. It makes people who are unhappy with jobs "just stay until the next bonus". They might quit just after getting it, but if they hesitate and don't do it on the spot, soon they'll be already in another bonus cycle, and again it makes more sense to wait till they get it etc. The effect is strongest of course if the bonus is substantial.