FIRE'd@51 said:That never stopped many of my former colleagues. They borrowed the anticipated bonus throughout the year. :
We get this lump sum at the end of the year, which is a percentage of our pay, 2-3%, I think. BUT, it gets deposited into our retirement accounts (if we don't actively manage, then it goes into a money market).
The total CRAP thing about it is that the thing doesn't start to vest until you've been with the company for 2 years (and that just changed, before this year, it took 3 years to start to vest). @ 2 years, you get 20%, 3 years: 40%, 4 years: 60% & so on. I think it's somewhat idiotic myself. I'd like to know what they do with all the money that people don't end up getting (most people move on after 2-4 years).
part of what irritates me is how they totally talk it up, like it's this amazing thing. it's a way for them to get out of GIVING us a real year-end bonus (the way almost all companies in my industry do), & to get get a lot of the money back that they supposedly "give" because of job turnaround.
Wow. The way people feel about their bonuses is really sobering for an employer like me. For instance, the bonus above was probably thoughfully structured in an attempt to retain good employees, but in this instance it looks like it just made Celany mad instead.
Actually, it doesn't look like many of the bonuses described are retaining anyone very well, as everyone seems to be looking to quit ASAP or change jobs.
My company offers a matching 401K (100% of the first 3% and vested over a period of years), and I have found that it has done very little to help retain people. We also do a small year end bonus, but it's more of Christmas bonus (fairly small).
The best retention tool I have found is just pay them a good wage, and probably almost as important, frequently talk and pay attention to them so they don't feel used/abused.
Wow. The way people feel about their bonuses is really sobering for an employer like me.
As for your 401(k), 3 percent is puny... there is nobody I know of who would stay just for that... heck I get 5% and I think that is small...
I'd kill to get a 3% match in my 401(k)
I'd kill to get a 3% match in my 401(k)
If so, how much of a role did it play in your ability to FIRE?