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Unfair Incentive Pay

By larrywpace ·
My company I work for (financial institution) has just rolled out an incentive based pay scale for the VP's and Managers of the different branches. Basically, if the loans grow, deposits grow, expenses go down and etc. etc. etc. they get the chance of an additional $500. added to their monthly paycheck on the next 15th of the month after the month end. The CEO told me this week that the IT department basically gets a $300.00 a month budget to buy any toy, software, or device that they want, based on reports being delivered on time, and up time. I find this extremely unfair, Everyone else gets cash and me and my department get a shared $300 pot. I'm wondering how other IT departments get incentive or bonus pay. After all, We support everyone at all offices/branches and keep their systems online and internet up and they get cash and we get nothing. I'm working on a better plan for the CEO/CFO to tell them that we want a slice of the pie also. What is your plan for incentive for IT people? What are the measureable ways that your able to incent your back office people. is it uptime, time to resolve issues, expenses, project work? Thanks for input.

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Not clear on that.

by Tony Hopkinson In reply to That would be cool

Is the monthly goodie the employee's or can they only lend it during play time on condition they don't leave the premises ? In that case the bonus is a potential budget allocation of 300$ per month * performance factor. Not so good.

I can't see what you'd spend such a small amount on as an extra in IT every month.

Departmental allocation of jamaica blue mountain would be nice, but I've heard americans do awful things to coffee. It would be a major diplomatic incident if someone put milk in it, maple nuts would be a declaration of war. Even if they didn't you'd need a good strong lock to keep all them rich bleeders out.

If it's theirs to do with as they will save it for a year, pro rata it between employees and service that year. One decent goodie each and a bit left over for a departmental knees up.

Wonder what their tax position would be in the
US ? In the UK a gift would be taxable if it was considered in lieu of salary by the taxman. Might be better giving it all to a charity and getting their faces in the local rag.

Guy never said how many bodies, lets say five including him and it pays out every month thats 720$ each a year. 35 hour week (dream on), 48 working weeks is about 42c an hour, before tax.

Ho hum.

If there's only him and a junior 71c an hour, before tax.

Just got this picture of some senior manager type ambling into the department with a big fat cheque in his hand, saying what did you chaps get ?
In england he would n't need his money to have the department's top of the range pda surgically removed.
LOL

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Taxable here

by Oz_Media In reply to Not clear on that.

All income, cash bonuses and commission is taxable here.

They are planning on taxing cold water and air I'm sure, where every toilet flush or a breath outside will cost you.

But it's stll the prettiest place around so I don't care, like the old saying goes, you get what you pay for.

I get taxed BIG time from my UK income, it usually stays in the bank over there. Us taxation is sickening when you bring the income up north too.

I feel so important, all these government deem me so wealthy they all want a cut of my income! :)

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Tax law in a nutshell, you pay what we say.

by Tony Hopkinson In reply to Taxable here

I worked in Holland for long enough to be deemed not tax resident, filled in all the forms. Just got a letter saying I am in default with my National Insurance, one of the forms was like for like on NI, haven't calmed down enough to ask the what the f**k they are on about yet. I know I paid a bucket load of it while I was over there, it was on my payslip.

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Your right...also

by dafe2 In reply to Meaningless Bonus = Faili ...

I think that's the case in this fellows post.....'the throw money at it' & my problem goes away.

It's the same in sales - High Comission carrots = trying to sell something no one usually buys. LOL

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You could look at it this way

by jdmercha In reply to Unfair Incentive Pay

We are all paid to do a job. If a company does well it might share its fortune by paying a bonus to its employees, accross the board. (My wife is also in IT for a large firm, she has been getting a 1%-3% bonus each year.) Generally you do not get a bonus for doing your job.

A saleman might have a minimum goal of $1mil in sales. $600k covers the cost of goods sold, 300k goes to cost of overhead, $20k in commission and $80k in profits for the company. The salseman did his job, thus no bonus.

If that same salesman sells $2mil the overhead has already been covered, so the company profit from the 2nd mil is $380k. So the company keeps $280k profit and gives the salesman a $100k bonus.

It is extremely difficult for any IT person to have such an impact on the bottom line.

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Incentive pay, bonus -- what does that mean, father? :)

by TomSal In reply to Unfair Incentive Pay

Dude (oh sorry I'm carrying over my slang from another thread on here lol) that's $300 more than my department sees per month.

There is no such thing as incentive pay or bonus here ...period. Doesn't matter how great the company does either -- could be record-breaking quarters for 2 years straight ...doesn't matter. Still Nada..zip, zilch, zero!

As unfair as it may seem, trust me on this one man...your company is generous!

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Any incentive is good incentive...

by TechieRob In reply to Unfair Incentive Pay

I laugh sometimes when I read posts like this...

I don't even get a 'thankyou' for the late nights and server rebuilds, or any thanks nine times out of ten when I fix something...

Most of us in IT would kill for incentive like that :)

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Really ?

by Tony Hopkinson In reply to Any incentive is good inc ...

PC support gets paid a bonus based on every support call successfully resolved.

Software guys get paid bonus for not writing code that needs supporting as much.

Both perfectly sensible if they are in separate companies, in the same one, bad bad idea.

One more point how do you feel about management thinking that they have to pay you extra to do your job right. It's as though they think you are unprofessional or something isn't it.

Trust me, down the food chain just like Oz said in sales. Bonus is instead of salary not on top of it.

Giving employees a stake in the business is always a good idea, putting a stake in your employees not usually as well received.

LOL

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Incentive - NOT bonus

by larrywpace In reply to Unfair Incentive Pay

We are a part of the yearly bonus pay, based on the over all goals of the entire company. If we get 80% of the goal then good bonus, 100% better bonus, 120% awesome bonus. The key word here is Incentive. The entire management team is getting a chance at $6,000 extra dollars a year and I'm not getting a slice of that pie, yes, I do make more than them but even the CFO, the internat auditor, and **** even the facilities manager is getting incentive pay, Incentive pay for a facility person, can someone explain that one.

I'm not in sales and have no desire to ever be in sales, It just doesn't seem right that VP's, and supervisors and manager's are getting a chance to add to their monthly paycheck (above and beyond the yearly bonus) and the IT guy (me) get's a $300 allowance for a toy, I've got a corporate credit card and buy whateve the **** I want whenever I want so $300 is nothing. I've got a $5,000 credit card and trust me, Bust Buy, and Comp USA sees me on a weekly basis. I've got stuff I've never taken out of the box yet.

I guess anothe question is, how "would you" incent an "IT Mangager" if you were the CEO and you were giving incentive pay to Facilities mgr, internal audit, HR, and you had to incent your IT MGR, what would you do.

They all get $$$$$$$ and I get a $300 credit line for a computer store, i've got kids, a house, and mouths to feed.

Does that make sense?

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Not even a little bit

by Tony Hopkinson In reply to Incentive - NOT bonus

How about

Utilization.

Categorize what the department does in terms of how little or much it adds value to the business.
Numbers don't matter you could even put a survey out to your 'customer' and ask them identify the most valuable three services IT supplies.
Take that with a pinch of salt, as making sure the printer has paper & toner in it will be high on the list.
You and your guys book their time to the codes. Then your aim is to engineer out as much of the low added value as you can.

My manager loves it even prepared to take the hit of an adminstrative team meeting to show us the graphs, every month. Explains them every time as well. Absolutely fascinating.

Seems to fly at our place though, and it's efectively cost based without putting ideas in to bean counters heads about straight costs because salaries and even your credit card aren't in it.

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