RE: Bonus instead of raise -- why?

["Dan Hall" <dhall -at- san-carlos -dot- rms -dot- slb -dot- com>]

Just my thoughts...

I'd assume that they're holding the line. If you look at it from
the management perspective, this makes sense. When you're saving
for retirement, the miracle of compounding interest works for
you. When you're paying employees, it works against you.

Your point about the job market is also well taken. Last year my
company had layoffs, and offered substantial bonuses to those 
who stayed - bonuses that were "deferred"; the longer you stayed
the more you got, up to the total amount. When they had layoffs
earlier this year, as the economy was slowing, no such offer was
made. :(

The lump sum actually does have at least one upside: the firm
must be on reasonably stable financial ground to afford the cash
up front. That's cause for a smile in these (for some) trying
times.


HTH

Dan

Dan Hall
Sr. Technical Writer
SchlumbergerSema RTEMS

-----Original Message-----
From: anonfwd -at- raycomm -dot- com
Subject: FWD: Bonus instead of raise -- why?


Hello,
I'm a tech-pubs manager at a smallish-sized software company. My company's
annual review cycle is coming around. I have just been informed that --
all across the company -- raises will be handled differently this year.
Instead of getting, say, a 5% raise, we will get the 5% in one lump sum
with the first pay period at which the raise would have been effective.

Anyone know why they might be doing this?  Is it to hold the line on
future increases?  Are they betting that in this job market, people won't
just pocket the lump sum and leave?

Any input is appreciated. Thanks!



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