Bonus Issue
Boombaclaart
Posts: 7 Forumite
Need a bit of advice.
I work for a retail company as a department manager. As a manager the only opportunity I have to achieve a bonus is a bi-annual (6 month) set of targets.
The first is to achieve +10% over budget (which is already a 15% increase vs LY) and the 2nd is for at least 95% of my team to achieve their individual targets.
My question relates to the 2nd target. The bonus scheme states "95% or above of team to achieve personal targets". That's all it states (pretty ambiguous) and there isn't anything else in the "rules" explaining how it's worked out.
So 100% of my team achieved their cumulative personal sales for the 6 month period. I am now being told that its worked out as an average across the 6 months and because some months not all members of the team achieved, it brings the percentage down. Due to this I do not qualify for the bonus payment. Despite all of my team exceeding the target over the period.
None of this is explained within the scheme rules.
However the below is included in the rules which I believe is their get of of jail free card
THE RULES
All company bonus and/or commission schemes are non-contractual and entirely discretionary.
The Company reserves the right to review, amend or change this scheme at any time and without notice.
Potential commission/bonus payments should not be considered part of regular remuneration and do not form part of guaranteed earnings
If they decide not to pay this bonus, do I have any argument??
Any advice is appreciated.
I work for a retail company as a department manager. As a manager the only opportunity I have to achieve a bonus is a bi-annual (6 month) set of targets.
The first is to achieve +10% over budget (which is already a 15% increase vs LY) and the 2nd is for at least 95% of my team to achieve their individual targets.
My question relates to the 2nd target. The bonus scheme states "95% or above of team to achieve personal targets". That's all it states (pretty ambiguous) and there isn't anything else in the "rules" explaining how it's worked out.
So 100% of my team achieved their cumulative personal sales for the 6 month period. I am now being told that its worked out as an average across the 6 months and because some months not all members of the team achieved, it brings the percentage down. Due to this I do not qualify for the bonus payment. Despite all of my team exceeding the target over the period.
None of this is explained within the scheme rules.
However the below is included in the rules which I believe is their get of of jail free card
THE RULES
All company bonus and/or commission schemes are non-contractual and entirely discretionary.
The Company reserves the right to review, amend or change this scheme at any time and without notice.
Potential commission/bonus payments should not be considered part of regular remuneration and do not form part of guaranteed earnings
If they decide not to pay this bonus, do I have any argument??
Any advice is appreciated.
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Comments
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Boombaclaart wrote: »Need a bit of advice.
I work for a retail company as a department manager. As a manager the only opportunity I have to achieve a bonus is a bi-annual (6 month) set of targets.
The first is to achieve +10% over budget (which is already a 15% increase vs LY) and the 2nd is for at least 95% of my team to achieve their individual targets.
My question relates to the 2nd target. The bonus scheme states "95% or above of team to achieve personal targets". That's all it states (pretty ambiguous) and there isn't anything else in the "rules" explaining how it's worked out.
So 100% of my team achieved their cumulative personal sales for the 6 month period. I am now being told that its worked out as an average across the 6 months and because some months not all members of the team achieved, it brings the percentage down. Due to this I do not qualify for the bonus payment. Despite all of my team exceeding the target over the period.
None of this is explained within the scheme rules.
However the below is included in the rules which I believe is their get of of jail free card
THE RULES
All company bonus and/or commission schemes are non-contractual and entirely discretionary.
The Company reserves the right to review, amend or change this scheme at any time and without notice.
Potential commission/bonus payments should not be considered part of regular remuneration and do not form part of guaranteed earnings
If they decide not to pay this bonus, do I have any argument??
Any advice is appreciated.
You have no argument as it is (with most employers) covered by a catch all discretionary clause, Im afraid.0 -
"Discretionary" should be a clue.0
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I kind of knew that would be the case but was hoping there would be some way to argue the case.
Such !!!!!!!! they can dangle a carrot to drive people to then be able to just take it away once it's done.0 -
Boombaclaart wrote: »I knew that would be the case but was hoping there would be some way to argue the case.
Such !!!!!!!! they can dangle a carrot to drive people to then be able to just take it away once it's done.
The annoying thing is the sales team earn more in commission each month than I would have even received as a 6 month bonus.
Legally the employer's discretion in these matters is fairly wide but should not be applied "perversely". So there is a remote possibility you may have a case but you would need good professional advice before considering action.0 -
Do your team get bonuses for meeting (or exceeding) their targets cumulatively or every month?But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0 -
theoretica wrote: »Do your team get bonuses for meeting (or exceeding) their targets cumulatively or every month?
My team get paid for achieving their monthly targets and received a percentage of their sales.
The management bonus is based on 95% of the team achieving their personal target and its tracked over a 6 month period.
Even though my team have achieved they targeted figure over the 6 months as a whole, due to the fact some months they missed it, I don't get paid a bonus 🤷!♂️0 -
Boombaclaart wrote: »My team get paid for achieving their monthly targets and received a percentage of their sales.
The management bonus is based on 95% of the team achieving their personal target and its tracked over a 6 month period.
Even though my team have achieved they targeted figure over the 6 months as a whole, due to the fact some months they missed it, I don't get paid a bonus 🤷!♂️
Seems to me your work is consistent - your team get (or don't) their bonus for each month, not cumulatively. If your team have a 95% on target rate, also judged each month, you would get yours.But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0 -
theoretica wrote: »Seems to me your work is consistent - your team get (or don't) their bonus for each month, not cumulatively. If your team have a 95% on target rate, also judged each month, you would get yours.
This was my thinking.
Shame they have the get out of jail free card and will just drop the "discretion" card.
I'm in a meeting with both the HR and Finance managers on Friday to argue my case but I can't see it being productive.0 -
You put your case that overall you have met the underlying objectives for the 6 month period.
Get the bonus terms clarified for the next period ask for additional target for overall
Track the next 6 months more closely and if necessary do smoothing to make sure everyone hit the targets.0 -
theoretica wrote: »Seems to me your work is consistent - your team get (or don't) their bonus for each month, not cumulatively. If your team have a 95% on target rate, also judged each month, you would get yours.theoretica wrote: »Do your team get bonuses for meeting (or exceeding) their targets cumulatively or every month?How many employees do you manage? Might be worth crunching the numbers to see how many targets had to be missed to trigger the loss in bonus, as the less employees you manage the more variance plays its part.
If, for example, you manage only two then this bonus is fundamentally flawed.
I only have 3 sales people in my team (it's a VIP lead department so requires a smaller dedicated team). In three separate months, I had one team member miss target, which in turn brought the average for those months down to 66%. Over the course of 6 months this meant my average was approx 83% thus missing the 95% target. However, the 'rules' don't state its averaged over a 6 month period that way and eludes to it being the overall, cumulative amount. Its so ambiguous in how it's worded they could change they way its paid.
I have to assume due to the climate atm they are cost saving where possible maybe?0
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