Retirement investing...

[ecotourist]

How does one get a "bonus"? I never understood that. Companies just give you money for as a tax loss method or what?

In my last workplace there were bonuses for meeting pre-agreed targets. We proposed targets for the coming year which were reviewed, revised and approved every year before January 31. The bonus for everyone in the department was based upon meeting the targets by December 31.

My possible bonus was 20% of my annual salary. All staff were eligible for a bonus of at least 10%.

The targets were not easy but within our control and possible. We met all of the targets for 10 years in a row, and that wasn't accidental. The bonus plan focuses the mind. My team reviewed our progress towards meeting the objectives on a weekly basis. If something was off track it got a lot of attention. We reported to all our our staff progress towards meeting the objectives every month.

That approach is good for senior management as well - they can reasonably expect most objectives to be met.

It was all taxable income of course, paid out to everyone still in the department as of the first day of the new year. So staff retention was an additional advantage.

 

[Ws6]

There are all kinds of bonuses. Silicon Valley has been legendary for its bonuses to keep key employees and to incentivise. These include:

• A check for whatever amount.
• Stock options and grants. Yeah baby! This is where the $$ is.
• A bike or other gift. Even cars... One top salesman got a MBZ...

Bonuses are taxable items. They are spot rewards or "Golden handcuffs".

I got a knockoff Stanley cup once. That was kindof cool. I think it was a 5 year anniversary or something. For my 10 year, if they do anything (it's coming up in a few months), I think they make a little wooden thing reminding me I've been here for a decade.

 

[Ws6]

In my last workplace there were bonuses for meeting pre-agreed targets. We proposed targets for the coming year which were reviewed, revised and approved every year before January 31. The bonus for everyone in the department was based upon meeting the targets by December 31.

My possible bonus was 20% of my annual salary. All staff were eligible for a bonus of at least 10%.

The targets were not easy but within our control and possible. We met all of the targets for 10 years in a row, and that wasn't accidental. The bonus plan focuses the mind. My team reviewed our progress towards meeting the objectives on a weekly basis. If something was off track it got a lot of attention. We reported to all our our staff progress towards meeting the objectives every month.

That approach is good for senior management as well - they can reasonably expect most objectives to be met.

It was all taxable income of course, paid out to everyone still in the department as of the first day of the new year. So staff retention was an additional advantage.

That's insane. Literally getting paid...to do what you're paid to do.

Typically I just threaten to leave every 5 years or so unless I get a cost of living adjustment. After fighting about it for 6mo, so far I've been successful each time.

It's posts like these that remind me of why I do what I do for the time off.

 

[Ws6]

There are all kinds of bonuses. Silicon Valley has been legendary for its bonuses to keep key employees and to incentivise. These include:

• A check for whatever amount.
• Stock options and grants. Yeah baby! This is where the $$ is.
• A bike or other gift. Even cars... One top salesman got a MBZ...

Bonuses are taxable items. They are spot rewards or "Golden handcuffs".

Ooohhh! I do remember one time. They didn't pay me for over a years worth of shift differential and when they did it was taxed like a bonus. That kindof sucked.

 

[rijndael]

That's insane. Literally getting paid...to do what you're paid to do.

When everyone is eligable for such large bonuses, and targets are easily met, they're really just part of your normal compensation package.

At one of my jobs, you had 3 parts to your annual pay. Base Salary, Your Contribution to Profits, Billing Utilization.

 

[Ws6]

When everyone is eligable for such large bonuses, and targets are easily met, they're really just part of your normal compensation package.

At one of my jobs, you had 3 parts to your annual pay. Base Salary, Your Contribution to Profits, Billing Utilization.

That makes sense. I can access a bonus if I take on another department's job, but that's just corporate being lazy and wanting to pay several people $3k/year each to do the job of a $80k/year+benefits employee.

 

[ecotourist]

That's insane. Literally getting paid...to do what you're paid to do.

Getting a large staff motivated is harder than you think. Try doing it. It's not easy. Then try keeping them motivated for 10 consecutive years.

As one example our customer satisfaction went from 40% to 95 - 98% and stayed in that range - for 10 consecutive years.

When targets are properly structured there is no beating the system either. You have to actually get better, year after year after year.

 

[ecotourist]

Getting a large staff motivated is harder than you think. Try doing it. It's not easy. Then try keeping them motivated for 10 consecutive years.

Strangely enough, it's easiest to create a high performing team out of a low performing team. Team members can see and feel the difference. They never want to go back to the way it was. People actually want to do a good job.

Long term employees who knew how low performance felt were the easiest to keep motivated. People prefer the way high performance feels.

 

[Ws6]

I typed a bunch of stuff, but you wouldn't get it unless you've served, or worked in an industry where people die, and you are expected to deal with violence, so I just erased it and will say that yes, I can motivate a team in the most disgusting of situations, and that is most of what my job entails.

 

[SC Maintenance]

Getting a large staff motivated is harder than you think. Try doing it. It's not easy. Then try keeping them motivated for 10 consecutive years.

As one example our customer satisfaction went from 40% to 95 - 98% and stayed in that range - for 10 consecutive years.

When targets are properly structured there is no beating the system either. You have to actually get better, year after year after year.

Let me guess. This was roughly between 2010 and 2020 when wages were artificially suppressed and workers didn’t have many options?

 

[JeffKeryk]

Getting a large staff motivated is harder than you think. Try doing it. It's not easy. Then try keeping them motivated for 10 consecutive years.

As one example our customer satisfaction went from 40% to 95 - 98% and stayed in that range - for 10 consecutive years.

When targets are properly structured there is no beating the system either. You have to actually get better, year after year after year.

I never understood that. Blew my mind. My paycheck motivated me.

 

[ecotourist]

Let me guess. This was roughly between 2010 and 2020 when wages were artificially suppressed and workers didn’t have many options?

Nope 2000 - 2015. Wages were above the community average and with good benefits.

 

[SC Maintenance]

Nope 2000 - 2015. Wages were above the community average and with good benefits.

So the last half was in the GFC and zirp. Won’t be as easy now as workers have more options.

 

[Sumboodie]

I think there is a lot of good info, for free, on the internet that you can find. But one key takeaway is that $500k sounds like a lot—but isn’t. Its more of a good start.

Can easily live off the interest of 500k.

 

[Ws6]

I never understood that. Blew my mind. My paycheck motivated me.

It's very complex. When the pay is trash, you have to get creative and tailor your individual tact to each team member. That's part of where being a successful leader vs paper pushing idiot differentiates in performance.

 

[Sumboodie]

Can easily live off the interest of 500k.

Figure at 10%, that's 50k a year.

$4100 a month.

That's good money if you planned right and don't owe everything to the bank.

Plus SS, figure another ~$1500 a month...per person.

My folks retired a few years ago, definitely didn't have 500k in retirement. Maybe ~300k.

House paid off in the 80s, don't owe money to anyone. Fairly low COL area.
They are living happily ever after. No they aren't on cruises all over the world or blowing money like a drunk sailor, but they don't want to.

Course if you're used to making crazy money, like 150k+ a year, well, maybe under half that would be rough.

And yes I understand the value of money is reduced. But so do your hobbies and desires.
At 60 maybe you like riding ATV, boating, fishing, hunting, etc..
Probably doing less of that at 80, if you're even still around.

 

[Pablo]

Who getting 10%?

 

[JeffKeryk]

It's very complex. When the pay is trash, you have to get creative and tailor your individual tact to each team member. That's part of where being a successful leader vs paper pushing idiot differentiates in performance.

Must be... All I know is, I went from homeless, doing tree work, making squat and being called every name in the book to being paid real well, health bennies, paid days off, etc in a freakin' air conditioned office. Started the day in nice clean clothes and ended the same way.

You call this work? You bet I was grateful and tried to give better than I got. I had motovation up the yin-yang; I wanted more.

 

[Ws6]

Must be... All I know is, I went from homeless, doing tree work, making squat and being called every name in the book to being paid real well, health bennies, paid days off, etc in a freakin' air conditioned office. Started the day in nice clean clothes and ended the same way.

You call this work? You bet I was grateful and tried to give better than I got. I had motovation up the yin-yang; I wanted more.

I miss doing city maintenance. If the pay were there, I'd be back ASAP.

Also, yes, my job is massively complex.

 

[Sumboodie]

Who getting 10%?

Was a low estimate.