The Disappointing Holiday Bonus

in Careers by marcus — December 12, 2007 at 2:41 pm | 0 comments

Some things in life are so hyped that, when you finally experience them, they are a big letdown.

For example, when rumors that Star Wars: Episode One was finally being produced after a decade and a half of waiting and speculating, the planet exploded with the chatter of millions of fans. The seeds last planted with The Return of the Jedi had germinated and sprouted fruit far beyond creator George Lucas’ control or ability. When the movie was released, those same rabid fans rushed the theaters, only to emerge two hours later mostly disappointed. “The acting was terrible,” they said, “Too many special effects. Bad accents. Too much Jar Jar Binks. No Han Solo. Etc. etc. etc…”

The fact of the matter was, with all the build-up, all of the hype and fantasizing, no movie would have measured up to expectations.

So, you’re probably wondering what this has to do with school or careers, which is what we usually write about here. I assure you I am getting to a point, and the point is this: holiday bonuses, like the Phantom Menace, will almost always fail to meet expectations. You work all year-long for that proverbial carrot and, when you finally get it in your hands, the darned thing looks so… tiny.

My advice to those disappointed throngs out there: don’t depend on or think about the bonus. To rely on the holiday bonus is the path to frustration, resentment, and sadness.

All year long, your boss will tell you that the better your performance, the higher your bonus. If you exceed these goals and make the company a million dollars and find a cure for cancer, they will increase your bonus rate by two percentage points. Your eyes flash with dollar signs, thinking about what you could do with 8, 10, or 12 percent of your annual pay. You could get little Timmy those braces he so badly needs. You could take that trip to Aruba. You could build that deck. So many possibilities. And so you begin including the bonus in your financial plans for the year.

The year goes on. You are sure you’re exceeding all expectations, creating value, yada yada yada. You’ve already picked out that new car for which you will use your huge bonus as a down payment.

Then comes the day of your performance evaluation, the one which will ultimately determine how large your bonus will be. The boss sits down with you and tells you your performance has been fine. You show room for improvement in proper labeling techniques and some other obscure performance category. So he’s proud to inform you that you qualify for a mid-sized bonus. That’s okay with you. At least it wasn’t the smallest one.

A couple weeks later, the bonus hits your bank account. You’ve had to scrap plans for the new car, but you may still be able to work out a Caribbean cruise. You check your account and have to rub your eyes and squint to make sure you’ve read it right. It may just be your imagination, but it looks like only half of the expected amount made it. You go to the payroll people in disbelief. They inform you that holiday bonuses are taxed at a higher rate than regular pay. No mistake has been made. What you see is what you get.

You head home dejected, feeling duped and angry. There will be no new deck, no cruise. Timmy will have to settle for crooked teeth. You’ll be lucky to be able to pay for those presents you already bought.

But then, of course, if you’ve already received your holiday bonus, you already know exactly what I’m talking about.

To avoid this situation, I advise that you treat the bonus as if it doesn’t exist. Plan and budget without taking that extra pay into consideration. Then, when it comes, you will be happy because it’s just extra money. You didn’t have your hopes up and you weren’t depending on it.

Are you disappointed with your bonus? Do you feel shafted by the boss and those sneaky IRS guys? Gripe below…

Tags: advice holiday bonus work