Bonus time can be a difficult few weeks, especially if our bonuses don’t meet our expectations. Often, any expectation shortfall can be pinned on management missteps.
By Ryan G. Lafferty, CPA
By the end of March, many of us will have received our year-end bonus, if one was coming. While some will be happy, many will not. Bonus time can be a difficult few weeks, especially if our bonuses don’t meet our expectations. And often the expectation shortfall can be pinned on management.
Many companies do a fine job of communicating company performance to outside stakeholders; unfortunately they fail to communicate sufficiently to their own employees, the people responsible for performance. This communication breakdown can lead to surprises and often anger. Aramark, an employer of about 270,000 people, including close to 14,000 here in Pennsylvania, recently made headlines for not providing year-end bonuses to a large number of its employees. The company now faces litigation and a public relations nightmare.
How can a company avoid a shocking or devastating scenario for its employees? Following the “Four C’s” of bonus practices should help alleviate the pain:
Ryan G. Lafferty, CPA, is a partner with Attolon Partners LLC in Philadelphia. He can be reached at rlafferty@attolon.com.
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