Total potential earnings have been reduced, how to deal with?

The name of the pictureThe name of the pictureThe name of the pictureClash Royale CLAN TAG#URR8PPP





.everyoneloves__top-leaderboard:empty,.everyoneloves__mid-leaderboard:empty margin-bottom:0;







up vote
6
down vote

favorite












I've just had my annual salary review, which has caused my remuneration to change.



  • My base salary has gone up.

  • My potential bonus has shifted from 20%, to 8% minimum (Although it's not really a minimum, you can still get less).

When both changes are taken into account, and if I achieve the 8% minimum, my earnings will be less than last year.



My manager has stated my position is now better because 8% is the minimum, and my bonus is no longer capped at 20%, it is unlimited. In reality however, I know of high performers who have been awarded less than 8%.



My questions are:



  1. Am I in a good position to ask them to match my current potential earnings, by raising the base salary to match (at an assumed 8% bonus).


  2. This happened today, should I pursue this matter ASAP, or is it okay to let it sit for a week or two?







share|improve this question






















  • Can your salary be changed without you signing anything?
    – nvoigt
    Jul 7 '15 at 12:32










  • I don't see why not? If a company chose to demote you and reduce your pay, it would be happening whether you choose to sign a piece of paper or not..Edit: this issue isn't a demotion
    – Richard Tan
    Jul 7 '15 at 12:35











  • Not where I live, that's why I'm asking. If you live in a state of at-will-employment, then a contract is worth nothing. But not everybody does. Sometimes, a contract is a contract and can only be changed if both parties agree.
    – nvoigt
    Jul 7 '15 at 12:38






  • 2




    They reconfigured your compensation so that they'd pay you less - that's the goal. You can pursue the matter with them if you want, but my presumption is that they made up their minds to be stingy with bonuses going forward. Your lament that your current compensation is less than last year's is likely to fall on deaf ears. As I said, they already made up their minds. Whether you want to pursue the matter now or wait one or two weeks makes no difference to the outcome.
    – Vietnhi Phuvan
    Jul 7 '15 at 13:18







  • 7




    This is why you should under no circumstances consider bonuses as part of your compensation when deciding to take a job. They are an extra, a nice to have, but never base your lifestyle on anything except your base salary. Bonuses flucate up and down as business fluctuates. Some years companies don;t give them at all. Never pick a job thinking that the 20% bonus is forever a part of your salary as it is not. Be wary of any company that offers a high bonus instead of a high salary.
    – HLGEM
    Jul 7 '15 at 13:47
















up vote
6
down vote

favorite












I've just had my annual salary review, which has caused my remuneration to change.



  • My base salary has gone up.

  • My potential bonus has shifted from 20%, to 8% minimum (Although it's not really a minimum, you can still get less).

When both changes are taken into account, and if I achieve the 8% minimum, my earnings will be less than last year.



My manager has stated my position is now better because 8% is the minimum, and my bonus is no longer capped at 20%, it is unlimited. In reality however, I know of high performers who have been awarded less than 8%.



My questions are:



  1. Am I in a good position to ask them to match my current potential earnings, by raising the base salary to match (at an assumed 8% bonus).


  2. This happened today, should I pursue this matter ASAP, or is it okay to let it sit for a week or two?







share|improve this question






















  • Can your salary be changed without you signing anything?
    – nvoigt
    Jul 7 '15 at 12:32










  • I don't see why not? If a company chose to demote you and reduce your pay, it would be happening whether you choose to sign a piece of paper or not..Edit: this issue isn't a demotion
    – Richard Tan
    Jul 7 '15 at 12:35











  • Not where I live, that's why I'm asking. If you live in a state of at-will-employment, then a contract is worth nothing. But not everybody does. Sometimes, a contract is a contract and can only be changed if both parties agree.
    – nvoigt
    Jul 7 '15 at 12:38






  • 2




    They reconfigured your compensation so that they'd pay you less - that's the goal. You can pursue the matter with them if you want, but my presumption is that they made up their minds to be stingy with bonuses going forward. Your lament that your current compensation is less than last year's is likely to fall on deaf ears. As I said, they already made up their minds. Whether you want to pursue the matter now or wait one or two weeks makes no difference to the outcome.
    – Vietnhi Phuvan
    Jul 7 '15 at 13:18







  • 7




    This is why you should under no circumstances consider bonuses as part of your compensation when deciding to take a job. They are an extra, a nice to have, but never base your lifestyle on anything except your base salary. Bonuses flucate up and down as business fluctuates. Some years companies don;t give them at all. Never pick a job thinking that the 20% bonus is forever a part of your salary as it is not. Be wary of any company that offers a high bonus instead of a high salary.
    – HLGEM
    Jul 7 '15 at 13:47












up vote
6
down vote

favorite









up vote
6
down vote

favorite











I've just had my annual salary review, which has caused my remuneration to change.



  • My base salary has gone up.

  • My potential bonus has shifted from 20%, to 8% minimum (Although it's not really a minimum, you can still get less).

When both changes are taken into account, and if I achieve the 8% minimum, my earnings will be less than last year.



My manager has stated my position is now better because 8% is the minimum, and my bonus is no longer capped at 20%, it is unlimited. In reality however, I know of high performers who have been awarded less than 8%.



My questions are:



  1. Am I in a good position to ask them to match my current potential earnings, by raising the base salary to match (at an assumed 8% bonus).


  2. This happened today, should I pursue this matter ASAP, or is it okay to let it sit for a week or two?







share|improve this question














I've just had my annual salary review, which has caused my remuneration to change.



  • My base salary has gone up.

  • My potential bonus has shifted from 20%, to 8% minimum (Although it's not really a minimum, you can still get less).

When both changes are taken into account, and if I achieve the 8% minimum, my earnings will be less than last year.



My manager has stated my position is now better because 8% is the minimum, and my bonus is no longer capped at 20%, it is unlimited. In reality however, I know of high performers who have been awarded less than 8%.



My questions are:



  1. Am I in a good position to ask them to match my current potential earnings, by raising the base salary to match (at an assumed 8% bonus).


  2. This happened today, should I pursue this matter ASAP, or is it okay to let it sit for a week or two?









share|improve this question













share|improve this question




share|improve this question








edited Jul 7 '15 at 14:57









JakeGould

6,5821739




6,5821739










asked Jul 7 '15 at 12:26









Richard Tan

1484




1484











  • Can your salary be changed without you signing anything?
    – nvoigt
    Jul 7 '15 at 12:32










  • I don't see why not? If a company chose to demote you and reduce your pay, it would be happening whether you choose to sign a piece of paper or not..Edit: this issue isn't a demotion
    – Richard Tan
    Jul 7 '15 at 12:35











  • Not where I live, that's why I'm asking. If you live in a state of at-will-employment, then a contract is worth nothing. But not everybody does. Sometimes, a contract is a contract and can only be changed if both parties agree.
    – nvoigt
    Jul 7 '15 at 12:38






  • 2




    They reconfigured your compensation so that they'd pay you less - that's the goal. You can pursue the matter with them if you want, but my presumption is that they made up their minds to be stingy with bonuses going forward. Your lament that your current compensation is less than last year's is likely to fall on deaf ears. As I said, they already made up their minds. Whether you want to pursue the matter now or wait one or two weeks makes no difference to the outcome.
    – Vietnhi Phuvan
    Jul 7 '15 at 13:18







  • 7




    This is why you should under no circumstances consider bonuses as part of your compensation when deciding to take a job. They are an extra, a nice to have, but never base your lifestyle on anything except your base salary. Bonuses flucate up and down as business fluctuates. Some years companies don;t give them at all. Never pick a job thinking that the 20% bonus is forever a part of your salary as it is not. Be wary of any company that offers a high bonus instead of a high salary.
    – HLGEM
    Jul 7 '15 at 13:47
















  • Can your salary be changed without you signing anything?
    – nvoigt
    Jul 7 '15 at 12:32










  • I don't see why not? If a company chose to demote you and reduce your pay, it would be happening whether you choose to sign a piece of paper or not..Edit: this issue isn't a demotion
    – Richard Tan
    Jul 7 '15 at 12:35











  • Not where I live, that's why I'm asking. If you live in a state of at-will-employment, then a contract is worth nothing. But not everybody does. Sometimes, a contract is a contract and can only be changed if both parties agree.
    – nvoigt
    Jul 7 '15 at 12:38






  • 2




    They reconfigured your compensation so that they'd pay you less - that's the goal. You can pursue the matter with them if you want, but my presumption is that they made up their minds to be stingy with bonuses going forward. Your lament that your current compensation is less than last year's is likely to fall on deaf ears. As I said, they already made up their minds. Whether you want to pursue the matter now or wait one or two weeks makes no difference to the outcome.
    – Vietnhi Phuvan
    Jul 7 '15 at 13:18







  • 7




    This is why you should under no circumstances consider bonuses as part of your compensation when deciding to take a job. They are an extra, a nice to have, but never base your lifestyle on anything except your base salary. Bonuses flucate up and down as business fluctuates. Some years companies don;t give them at all. Never pick a job thinking that the 20% bonus is forever a part of your salary as it is not. Be wary of any company that offers a high bonus instead of a high salary.
    – HLGEM
    Jul 7 '15 at 13:47















Can your salary be changed without you signing anything?
– nvoigt
Jul 7 '15 at 12:32




Can your salary be changed without you signing anything?
– nvoigt
Jul 7 '15 at 12:32












I don't see why not? If a company chose to demote you and reduce your pay, it would be happening whether you choose to sign a piece of paper or not..Edit: this issue isn't a demotion
– Richard Tan
Jul 7 '15 at 12:35





I don't see why not? If a company chose to demote you and reduce your pay, it would be happening whether you choose to sign a piece of paper or not..Edit: this issue isn't a demotion
– Richard Tan
Jul 7 '15 at 12:35













Not where I live, that's why I'm asking. If you live in a state of at-will-employment, then a contract is worth nothing. But not everybody does. Sometimes, a contract is a contract and can only be changed if both parties agree.
– nvoigt
Jul 7 '15 at 12:38




Not where I live, that's why I'm asking. If you live in a state of at-will-employment, then a contract is worth nothing. But not everybody does. Sometimes, a contract is a contract and can only be changed if both parties agree.
– nvoigt
Jul 7 '15 at 12:38




2




2




They reconfigured your compensation so that they'd pay you less - that's the goal. You can pursue the matter with them if you want, but my presumption is that they made up their minds to be stingy with bonuses going forward. Your lament that your current compensation is less than last year's is likely to fall on deaf ears. As I said, they already made up their minds. Whether you want to pursue the matter now or wait one or two weeks makes no difference to the outcome.
– Vietnhi Phuvan
Jul 7 '15 at 13:18





They reconfigured your compensation so that they'd pay you less - that's the goal. You can pursue the matter with them if you want, but my presumption is that they made up their minds to be stingy with bonuses going forward. Your lament that your current compensation is less than last year's is likely to fall on deaf ears. As I said, they already made up their minds. Whether you want to pursue the matter now or wait one or two weeks makes no difference to the outcome.
– Vietnhi Phuvan
Jul 7 '15 at 13:18





7




7




This is why you should under no circumstances consider bonuses as part of your compensation when deciding to take a job. They are an extra, a nice to have, but never base your lifestyle on anything except your base salary. Bonuses flucate up and down as business fluctuates. Some years companies don;t give them at all. Never pick a job thinking that the 20% bonus is forever a part of your salary as it is not. Be wary of any company that offers a high bonus instead of a high salary.
– HLGEM
Jul 7 '15 at 13:47




This is why you should under no circumstances consider bonuses as part of your compensation when deciding to take a job. They are an extra, a nice to have, but never base your lifestyle on anything except your base salary. Bonuses flucate up and down as business fluctuates. Some years companies don;t give them at all. Never pick a job thinking that the 20% bonus is forever a part of your salary as it is not. Be wary of any company that offers a high bonus instead of a high salary.
– HLGEM
Jul 7 '15 at 13:47










5 Answers
5






active

oldest

votes

















up vote
5
down vote














Am I in a good position to ask them to match my current potential
earnings, by raising the base salary to match (at an assumed 8%
bonus).




I'm not sure I would call this a "good position". You have a better base, and now also have a chance for an unlimited bonus as well. But you feel you may not be able to achieve a large bonus because of what you have seen happen to other "high-performers".



It's perfectly reasonable for you to ask for your base salary to be raised if you feel strongly about it. But certainly the company revised the earnings structure for a reason, so don't be surprised if they decline your request. (I'm assuming here that the changes were company-wide, or at least department-wide, and not simply directed at you individually.)



Every company where I have worked that had bonuses, did not let people opt-out or adjust their bonus structure. But you can always ask.




This happened today, should I pursue this matter ASAP, or is it okay
to let it sit for a week or two?




There's no value in waiting. I'd start this process today. Often, it's harder to undo something after it shows up in the next payroll.






share|improve this answer





























    up vote
    3
    down vote














    Am I in a good position to ask them to match my current potential earnings, by raising the base salary to match (at an assumed 8% bonus).




    No. Bonuses are... bonuses, and not salary. When I evaluated my total compensation for my current job's offer, I discounted the bonus to less than half of the target bonus. It's not a guarantee or else it wouldn't be called a bonus.



    If your company is remotely smart they will have some language like, "bonus subject to change by company at any time" blah blah language associated with their bonus program.




    This happened today, should I pursue this matter ASAP, or is it okay to let it sit for a week or two?




    Your manager has already told you that this has taken place. You got a base salary raise. Your manager has spoken highly of the improvement, rather than receiving your frustration/criticism.



    I'm not sure what you hope to accomplish by pressing the issue since it seems you and your manager already discussed this and your manager approached the subject positively. If anything, suggest concern your total compensation went down. But you already got a raise timed to match the decreased bonus potential...






    share|improve this answer





























      up vote
      1
      down vote













      I would suggest you go back to him, tell him what you want as far as salary. Don't even mention the bonus or ask for a larger bonus. Then if you get it great, if not then consider moving on to somewhere else that will pay you what you want to be happy.



      In the future don't even consider bonus in considering what you want for compensation; bonuses are never guaranteed money and they are never guaranteeed to be offered every year. Businesses like to offer bonuses like this to cheat you out of salary by making you think you are getting more than you will actually get over time. Insist on the salary compensation you want and enjoy a bonus if you get it, but consider it a one-time extra (like winning the lottery) not compensation.






      share|improve this answer




















      • Different industries operate differently. For most employees I would agree with you, but for people in the financial world or law firm partners, bonuses are considered to be a big part of their compensation.
        – Jim Clay
        Jul 7 '15 at 14:32

















      up vote
      1
      down vote













      Something to keep in mind, and I know sales is different than other positions, bonus is just that a bonus. It's not guaranteed in any way. Having more base pay (around 10% more if I do the math right on your post) is a pretty good "guarantee".



      So will you make less, maybe, make more, maybe. In the end it will depend on that bonus plan. I worked in a facility that was manufacturing based and gave a bonus based on annual overall company performance. After a year or two where goals were not met, the line workers complained and got a raise offset by being dropped from the bonus plan. They were all pretty happy, that is until the white collars, who were not dropped from the bonus plan, got a huge bonus when they did meet plan that year, mostly due to the work on the line workers killing it in December.



      So in the end, some years you WILL make more than had you been in the bonus plan, and other years not so much.



      As for waiting, I wouldn't wait more than a few days to discuss this. However, it seems like a fair plan to me given the lower risk in the guaranteed money vs. higher risk bonus money.






      share|improve this answer



























        up vote
        0
        down vote













        Unless you are willing to quit over it, you can pretty much assume they have considered all your arguments before making their decision. (And before quitting check how likely it is that a future employer will make a significantly better offer. This may still be the best option available.)



        Bonuses -- and indeed salary -- are not guaranteed to monotonically increase or to continue to be based on the same formulas. That depends on the needs of the business. The company has decided that its needs have changed, and/or that the incentives have not delivered the hoped-for improvements in the employees.



        Your only choices are to come up with numbers that demonstrate they're wrong (not likely; they have more data about company operations than you do), to accept the new offer and hope they change the plan again in the future and that those changes favor you, or to walk.






        share|improve this answer






















          Your Answer







          StackExchange.ready(function()
          var channelOptions =
          tags: "".split(" "),
          id: "423"
          ;
          initTagRenderer("".split(" "), "".split(" "), channelOptions);

          StackExchange.using("externalEditor", function()
          // Have to fire editor after snippets, if snippets enabled
          if (StackExchange.settings.snippets.snippetsEnabled)
          StackExchange.using("snippets", function()
          createEditor();
          );

          else
          createEditor();

          );

          function createEditor()
          StackExchange.prepareEditor(
          heartbeatType: 'answer',
          convertImagesToLinks: false,
          noModals: false,
          showLowRepImageUploadWarning: true,
          reputationToPostImages: null,
          bindNavPrevention: true,
          postfix: "",
          noCode: true, onDemand: false,
          discardSelector: ".discard-answer"
          ,immediatelyShowMarkdownHelp:true
          );



          );








           

          draft saved


          draft discarded


















          StackExchange.ready(
          function ()
          StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fworkplace.stackexchange.com%2fquestions%2f49316%2ftotal-potential-earnings-have-been-reduced-how-to-deal-with%23new-answer', 'question_page');

          );

          Post as a guest

























          StackExchange.ready(function ()
          $("#show-editor-button input, #show-editor-button button").click(function ()
          var showEditor = function()
          $("#show-editor-button").hide();
          $("#post-form").removeClass("dno");
          StackExchange.editor.finallyInit();
          ;

          var useFancy = $(this).data('confirm-use-fancy');
          if(useFancy == 'True')
          var popupTitle = $(this).data('confirm-fancy-title');
          var popupBody = $(this).data('confirm-fancy-body');
          var popupAccept = $(this).data('confirm-fancy-accept-button');

          $(this).loadPopup(
          url: '/post/self-answer-popup',
          loaded: function(popup)
          var pTitle = $(popup).find('h2');
          var pBody = $(popup).find('.popup-body');
          var pSubmit = $(popup).find('.popup-submit');

          pTitle.text(popupTitle);
          pBody.html(popupBody);
          pSubmit.val(popupAccept).click(showEditor);

          )
          else
          var confirmText = $(this).data('confirm-text');
          if (confirmText ? confirm(confirmText) : true)
          showEditor();


          );
          );






          5 Answers
          5






          active

          oldest

          votes








          5 Answers
          5






          active

          oldest

          votes









          active

          oldest

          votes






          active

          oldest

          votes








          up vote
          5
          down vote














          Am I in a good position to ask them to match my current potential
          earnings, by raising the base salary to match (at an assumed 8%
          bonus).




          I'm not sure I would call this a "good position". You have a better base, and now also have a chance for an unlimited bonus as well. But you feel you may not be able to achieve a large bonus because of what you have seen happen to other "high-performers".



          It's perfectly reasonable for you to ask for your base salary to be raised if you feel strongly about it. But certainly the company revised the earnings structure for a reason, so don't be surprised if they decline your request. (I'm assuming here that the changes were company-wide, or at least department-wide, and not simply directed at you individually.)



          Every company where I have worked that had bonuses, did not let people opt-out or adjust their bonus structure. But you can always ask.




          This happened today, should I pursue this matter ASAP, or is it okay
          to let it sit for a week or two?




          There's no value in waiting. I'd start this process today. Often, it's harder to undo something after it shows up in the next payroll.






          share|improve this answer


























            up vote
            5
            down vote














            Am I in a good position to ask them to match my current potential
            earnings, by raising the base salary to match (at an assumed 8%
            bonus).




            I'm not sure I would call this a "good position". You have a better base, and now also have a chance for an unlimited bonus as well. But you feel you may not be able to achieve a large bonus because of what you have seen happen to other "high-performers".



            It's perfectly reasonable for you to ask for your base salary to be raised if you feel strongly about it. But certainly the company revised the earnings structure for a reason, so don't be surprised if they decline your request. (I'm assuming here that the changes were company-wide, or at least department-wide, and not simply directed at you individually.)



            Every company where I have worked that had bonuses, did not let people opt-out or adjust their bonus structure. But you can always ask.




            This happened today, should I pursue this matter ASAP, or is it okay
            to let it sit for a week or two?




            There's no value in waiting. I'd start this process today. Often, it's harder to undo something after it shows up in the next payroll.






            share|improve this answer
























              up vote
              5
              down vote










              up vote
              5
              down vote










              Am I in a good position to ask them to match my current potential
              earnings, by raising the base salary to match (at an assumed 8%
              bonus).




              I'm not sure I would call this a "good position". You have a better base, and now also have a chance for an unlimited bonus as well. But you feel you may not be able to achieve a large bonus because of what you have seen happen to other "high-performers".



              It's perfectly reasonable for you to ask for your base salary to be raised if you feel strongly about it. But certainly the company revised the earnings structure for a reason, so don't be surprised if they decline your request. (I'm assuming here that the changes were company-wide, or at least department-wide, and not simply directed at you individually.)



              Every company where I have worked that had bonuses, did not let people opt-out or adjust their bonus structure. But you can always ask.




              This happened today, should I pursue this matter ASAP, or is it okay
              to let it sit for a week or two?




              There's no value in waiting. I'd start this process today. Often, it's harder to undo something after it shows up in the next payroll.






              share|improve this answer















              Am I in a good position to ask them to match my current potential
              earnings, by raising the base salary to match (at an assumed 8%
              bonus).




              I'm not sure I would call this a "good position". You have a better base, and now also have a chance for an unlimited bonus as well. But you feel you may not be able to achieve a large bonus because of what you have seen happen to other "high-performers".



              It's perfectly reasonable for you to ask for your base salary to be raised if you feel strongly about it. But certainly the company revised the earnings structure for a reason, so don't be surprised if they decline your request. (I'm assuming here that the changes were company-wide, or at least department-wide, and not simply directed at you individually.)



              Every company where I have worked that had bonuses, did not let people opt-out or adjust their bonus structure. But you can always ask.




              This happened today, should I pursue this matter ASAP, or is it okay
              to let it sit for a week or two?




              There's no value in waiting. I'd start this process today. Often, it's harder to undo something after it shows up in the next payroll.







              share|improve this answer














              share|improve this answer



              share|improve this answer








              edited Jul 8 '15 at 0:43

























              answered Jul 7 '15 at 14:04









              Joe Strazzere

              223k106656922




              223k106656922






















                  up vote
                  3
                  down vote














                  Am I in a good position to ask them to match my current potential earnings, by raising the base salary to match (at an assumed 8% bonus).




                  No. Bonuses are... bonuses, and not salary. When I evaluated my total compensation for my current job's offer, I discounted the bonus to less than half of the target bonus. It's not a guarantee or else it wouldn't be called a bonus.



                  If your company is remotely smart they will have some language like, "bonus subject to change by company at any time" blah blah language associated with their bonus program.




                  This happened today, should I pursue this matter ASAP, or is it okay to let it sit for a week or two?




                  Your manager has already told you that this has taken place. You got a base salary raise. Your manager has spoken highly of the improvement, rather than receiving your frustration/criticism.



                  I'm not sure what you hope to accomplish by pressing the issue since it seems you and your manager already discussed this and your manager approached the subject positively. If anything, suggest concern your total compensation went down. But you already got a raise timed to match the decreased bonus potential...






                  share|improve this answer


























                    up vote
                    3
                    down vote














                    Am I in a good position to ask them to match my current potential earnings, by raising the base salary to match (at an assumed 8% bonus).




                    No. Bonuses are... bonuses, and not salary. When I evaluated my total compensation for my current job's offer, I discounted the bonus to less than half of the target bonus. It's not a guarantee or else it wouldn't be called a bonus.



                    If your company is remotely smart they will have some language like, "bonus subject to change by company at any time" blah blah language associated with their bonus program.




                    This happened today, should I pursue this matter ASAP, or is it okay to let it sit for a week or two?




                    Your manager has already told you that this has taken place. You got a base salary raise. Your manager has spoken highly of the improvement, rather than receiving your frustration/criticism.



                    I'm not sure what you hope to accomplish by pressing the issue since it seems you and your manager already discussed this and your manager approached the subject positively. If anything, suggest concern your total compensation went down. But you already got a raise timed to match the decreased bonus potential...






                    share|improve this answer
























                      up vote
                      3
                      down vote










                      up vote
                      3
                      down vote










                      Am I in a good position to ask them to match my current potential earnings, by raising the base salary to match (at an assumed 8% bonus).




                      No. Bonuses are... bonuses, and not salary. When I evaluated my total compensation for my current job's offer, I discounted the bonus to less than half of the target bonus. It's not a guarantee or else it wouldn't be called a bonus.



                      If your company is remotely smart they will have some language like, "bonus subject to change by company at any time" blah blah language associated with their bonus program.




                      This happened today, should I pursue this matter ASAP, or is it okay to let it sit for a week or two?




                      Your manager has already told you that this has taken place. You got a base salary raise. Your manager has spoken highly of the improvement, rather than receiving your frustration/criticism.



                      I'm not sure what you hope to accomplish by pressing the issue since it seems you and your manager already discussed this and your manager approached the subject positively. If anything, suggest concern your total compensation went down. But you already got a raise timed to match the decreased bonus potential...






                      share|improve this answer















                      Am I in a good position to ask them to match my current potential earnings, by raising the base salary to match (at an assumed 8% bonus).




                      No. Bonuses are... bonuses, and not salary. When I evaluated my total compensation for my current job's offer, I discounted the bonus to less than half of the target bonus. It's not a guarantee or else it wouldn't be called a bonus.



                      If your company is remotely smart they will have some language like, "bonus subject to change by company at any time" blah blah language associated with their bonus program.




                      This happened today, should I pursue this matter ASAP, or is it okay to let it sit for a week or two?




                      Your manager has already told you that this has taken place. You got a base salary raise. Your manager has spoken highly of the improvement, rather than receiving your frustration/criticism.



                      I'm not sure what you hope to accomplish by pressing the issue since it seems you and your manager already discussed this and your manager approached the subject positively. If anything, suggest concern your total compensation went down. But you already got a raise timed to match the decreased bonus potential...







                      share|improve this answer














                      share|improve this answer



                      share|improve this answer








                      edited Jul 7 '15 at 15:51

























                      answered Jul 7 '15 at 13:55









                      Elysian Fields♦

                      96.8k46292449




                      96.8k46292449




















                          up vote
                          1
                          down vote













                          I would suggest you go back to him, tell him what you want as far as salary. Don't even mention the bonus or ask for a larger bonus. Then if you get it great, if not then consider moving on to somewhere else that will pay you what you want to be happy.



                          In the future don't even consider bonus in considering what you want for compensation; bonuses are never guaranteed money and they are never guaranteeed to be offered every year. Businesses like to offer bonuses like this to cheat you out of salary by making you think you are getting more than you will actually get over time. Insist on the salary compensation you want and enjoy a bonus if you get it, but consider it a one-time extra (like winning the lottery) not compensation.






                          share|improve this answer




















                          • Different industries operate differently. For most employees I would agree with you, but for people in the financial world or law firm partners, bonuses are considered to be a big part of their compensation.
                            – Jim Clay
                            Jul 7 '15 at 14:32














                          up vote
                          1
                          down vote













                          I would suggest you go back to him, tell him what you want as far as salary. Don't even mention the bonus or ask for a larger bonus. Then if you get it great, if not then consider moving on to somewhere else that will pay you what you want to be happy.



                          In the future don't even consider bonus in considering what you want for compensation; bonuses are never guaranteed money and they are never guaranteeed to be offered every year. Businesses like to offer bonuses like this to cheat you out of salary by making you think you are getting more than you will actually get over time. Insist on the salary compensation you want and enjoy a bonus if you get it, but consider it a one-time extra (like winning the lottery) not compensation.






                          share|improve this answer




















                          • Different industries operate differently. For most employees I would agree with you, but for people in the financial world or law firm partners, bonuses are considered to be a big part of their compensation.
                            – Jim Clay
                            Jul 7 '15 at 14:32












                          up vote
                          1
                          down vote










                          up vote
                          1
                          down vote









                          I would suggest you go back to him, tell him what you want as far as salary. Don't even mention the bonus or ask for a larger bonus. Then if you get it great, if not then consider moving on to somewhere else that will pay you what you want to be happy.



                          In the future don't even consider bonus in considering what you want for compensation; bonuses are never guaranteed money and they are never guaranteeed to be offered every year. Businesses like to offer bonuses like this to cheat you out of salary by making you think you are getting more than you will actually get over time. Insist on the salary compensation you want and enjoy a bonus if you get it, but consider it a one-time extra (like winning the lottery) not compensation.






                          share|improve this answer












                          I would suggest you go back to him, tell him what you want as far as salary. Don't even mention the bonus or ask for a larger bonus. Then if you get it great, if not then consider moving on to somewhere else that will pay you what you want to be happy.



                          In the future don't even consider bonus in considering what you want for compensation; bonuses are never guaranteed money and they are never guaranteeed to be offered every year. Businesses like to offer bonuses like this to cheat you out of salary by making you think you are getting more than you will actually get over time. Insist on the salary compensation you want and enjoy a bonus if you get it, but consider it a one-time extra (like winning the lottery) not compensation.







                          share|improve this answer












                          share|improve this answer



                          share|improve this answer










                          answered Jul 7 '15 at 13:54









                          HLGEM

                          133k25226489




                          133k25226489











                          • Different industries operate differently. For most employees I would agree with you, but for people in the financial world or law firm partners, bonuses are considered to be a big part of their compensation.
                            – Jim Clay
                            Jul 7 '15 at 14:32
















                          • Different industries operate differently. For most employees I would agree with you, but for people in the financial world or law firm partners, bonuses are considered to be a big part of their compensation.
                            – Jim Clay
                            Jul 7 '15 at 14:32















                          Different industries operate differently. For most employees I would agree with you, but for people in the financial world or law firm partners, bonuses are considered to be a big part of their compensation.
                          – Jim Clay
                          Jul 7 '15 at 14:32




                          Different industries operate differently. For most employees I would agree with you, but for people in the financial world or law firm partners, bonuses are considered to be a big part of their compensation.
                          – Jim Clay
                          Jul 7 '15 at 14:32










                          up vote
                          1
                          down vote













                          Something to keep in mind, and I know sales is different than other positions, bonus is just that a bonus. It's not guaranteed in any way. Having more base pay (around 10% more if I do the math right on your post) is a pretty good "guarantee".



                          So will you make less, maybe, make more, maybe. In the end it will depend on that bonus plan. I worked in a facility that was manufacturing based and gave a bonus based on annual overall company performance. After a year or two where goals were not met, the line workers complained and got a raise offset by being dropped from the bonus plan. They were all pretty happy, that is until the white collars, who were not dropped from the bonus plan, got a huge bonus when they did meet plan that year, mostly due to the work on the line workers killing it in December.



                          So in the end, some years you WILL make more than had you been in the bonus plan, and other years not so much.



                          As for waiting, I wouldn't wait more than a few days to discuss this. However, it seems like a fair plan to me given the lower risk in the guaranteed money vs. higher risk bonus money.






                          share|improve this answer
























                            up vote
                            1
                            down vote













                            Something to keep in mind, and I know sales is different than other positions, bonus is just that a bonus. It's not guaranteed in any way. Having more base pay (around 10% more if I do the math right on your post) is a pretty good "guarantee".



                            So will you make less, maybe, make more, maybe. In the end it will depend on that bonus plan. I worked in a facility that was manufacturing based and gave a bonus based on annual overall company performance. After a year or two where goals were not met, the line workers complained and got a raise offset by being dropped from the bonus plan. They were all pretty happy, that is until the white collars, who were not dropped from the bonus plan, got a huge bonus when they did meet plan that year, mostly due to the work on the line workers killing it in December.



                            So in the end, some years you WILL make more than had you been in the bonus plan, and other years not so much.



                            As for waiting, I wouldn't wait more than a few days to discuss this. However, it seems like a fair plan to me given the lower risk in the guaranteed money vs. higher risk bonus money.






                            share|improve this answer






















                              up vote
                              1
                              down vote










                              up vote
                              1
                              down vote









                              Something to keep in mind, and I know sales is different than other positions, bonus is just that a bonus. It's not guaranteed in any way. Having more base pay (around 10% more if I do the math right on your post) is a pretty good "guarantee".



                              So will you make less, maybe, make more, maybe. In the end it will depend on that bonus plan. I worked in a facility that was manufacturing based and gave a bonus based on annual overall company performance. After a year or two where goals were not met, the line workers complained and got a raise offset by being dropped from the bonus plan. They were all pretty happy, that is until the white collars, who were not dropped from the bonus plan, got a huge bonus when they did meet plan that year, mostly due to the work on the line workers killing it in December.



                              So in the end, some years you WILL make more than had you been in the bonus plan, and other years not so much.



                              As for waiting, I wouldn't wait more than a few days to discuss this. However, it seems like a fair plan to me given the lower risk in the guaranteed money vs. higher risk bonus money.






                              share|improve this answer












                              Something to keep in mind, and I know sales is different than other positions, bonus is just that a bonus. It's not guaranteed in any way. Having more base pay (around 10% more if I do the math right on your post) is a pretty good "guarantee".



                              So will you make less, maybe, make more, maybe. In the end it will depend on that bonus plan. I worked in a facility that was manufacturing based and gave a bonus based on annual overall company performance. After a year or two where goals were not met, the line workers complained and got a raise offset by being dropped from the bonus plan. They were all pretty happy, that is until the white collars, who were not dropped from the bonus plan, got a huge bonus when they did meet plan that year, mostly due to the work on the line workers killing it in December.



                              So in the end, some years you WILL make more than had you been in the bonus plan, and other years not so much.



                              As for waiting, I wouldn't wait more than a few days to discuss this. However, it seems like a fair plan to me given the lower risk in the guaranteed money vs. higher risk bonus money.







                              share|improve this answer












                              share|improve this answer



                              share|improve this answer










                              answered Jul 7 '15 at 14:31









                              Bill Leeper

                              10.7k2735




                              10.7k2735




















                                  up vote
                                  0
                                  down vote













                                  Unless you are willing to quit over it, you can pretty much assume they have considered all your arguments before making their decision. (And before quitting check how likely it is that a future employer will make a significantly better offer. This may still be the best option available.)



                                  Bonuses -- and indeed salary -- are not guaranteed to monotonically increase or to continue to be based on the same formulas. That depends on the needs of the business. The company has decided that its needs have changed, and/or that the incentives have not delivered the hoped-for improvements in the employees.



                                  Your only choices are to come up with numbers that demonstrate they're wrong (not likely; they have more data about company operations than you do), to accept the new offer and hope they change the plan again in the future and that those changes favor you, or to walk.






                                  share|improve this answer


























                                    up vote
                                    0
                                    down vote













                                    Unless you are willing to quit over it, you can pretty much assume they have considered all your arguments before making their decision. (And before quitting check how likely it is that a future employer will make a significantly better offer. This may still be the best option available.)



                                    Bonuses -- and indeed salary -- are not guaranteed to monotonically increase or to continue to be based on the same formulas. That depends on the needs of the business. The company has decided that its needs have changed, and/or that the incentives have not delivered the hoped-for improvements in the employees.



                                    Your only choices are to come up with numbers that demonstrate they're wrong (not likely; they have more data about company operations than you do), to accept the new offer and hope they change the plan again in the future and that those changes favor you, or to walk.






                                    share|improve this answer
























                                      up vote
                                      0
                                      down vote










                                      up vote
                                      0
                                      down vote









                                      Unless you are willing to quit over it, you can pretty much assume they have considered all your arguments before making their decision. (And before quitting check how likely it is that a future employer will make a significantly better offer. This may still be the best option available.)



                                      Bonuses -- and indeed salary -- are not guaranteed to monotonically increase or to continue to be based on the same formulas. That depends on the needs of the business. The company has decided that its needs have changed, and/or that the incentives have not delivered the hoped-for improvements in the employees.



                                      Your only choices are to come up with numbers that demonstrate they're wrong (not likely; they have more data about company operations than you do), to accept the new offer and hope they change the plan again in the future and that those changes favor you, or to walk.






                                      share|improve this answer














                                      Unless you are willing to quit over it, you can pretty much assume they have considered all your arguments before making their decision. (And before quitting check how likely it is that a future employer will make a significantly better offer. This may still be the best option available.)



                                      Bonuses -- and indeed salary -- are not guaranteed to monotonically increase or to continue to be based on the same formulas. That depends on the needs of the business. The company has decided that its needs have changed, and/or that the incentives have not delivered the hoped-for improvements in the employees.



                                      Your only choices are to come up with numbers that demonstrate they're wrong (not likely; they have more data about company operations than you do), to accept the new offer and hope they change the plan again in the future and that those changes favor you, or to walk.







                                      share|improve this answer














                                      share|improve this answer



                                      share|improve this answer








                                      edited Jul 8 '15 at 1:14

























                                      answered Jul 8 '15 at 0:09









                                      keshlam

                                      41.5k1267144




                                      41.5k1267144






















                                           

                                          draft saved


                                          draft discarded


























                                           


                                          draft saved


                                          draft discarded














                                          StackExchange.ready(
                                          function ()
                                          StackExchange.openid.initPostLogin('.new-post-login', 'https%3a%2f%2fworkplace.stackexchange.com%2fquestions%2f49316%2ftotal-potential-earnings-have-been-reduced-how-to-deal-with%23new-answer', 'question_page');

                                          );

                                          Post as a guest

















































































                                          Comments

                                          Popular posts from this blog

                                          What does second last employer means? [closed]

                                          Installing NextGIS Connect into QGIS 3?

                                          One-line joke