The bigger bonusSome time right after the summer ends the bonus chatter begins. Usually the first person to start the conversation on the upcoming bonus season is a loser.  He/she knows it but hope dies slowly in the corporate compensation merry go round. As year-end approaches employees become hardened in their expectations.  Nights out with colleagues self-reinforces what the alcohol consumed makes easier to mentally swallow. There will be no bigger bonus.

Only after a good deal of time does the corporate narrative begin.

Round 1 is usually sometime in late September/ early October and even the division managers feel optimistic.  Solid results should definitely yield good treatment for the bonus pool.  Employee retention should be a priority for any self respecting corporate master.  The managers feel good about their own prospects too.

Round 2 comes in November.  Now September quarter earnings are out and the high level corporate spin begins.  Management points out how difficult the competition is.  Management dives deep into the differences in performance among divisional contributors.  At this stage some employees hear the faint whisper that this time may not be their time.  Hope has begun to wane.

Round 3 is usually a December event but a lot happens in the shadows.  Managers have now been called individually and had their expectations lowered.  These managers have now tried their best to make their spreadsheets work.  Spread the peanut butter evenly or give outsized rewards to the superstars?

The office of the big boss is now a steady stream of comers and goers.  Sitting in the ante room managers try to read the expressions on the faces of their colleagues leaving the room.

Is he getting more than me?  Damn!

The whir of activity continues for days on end.  The news of the dim prospects starts to permeate out of the inner sanctum.  The troops now know it won’t be pretty.

By the time the employees get their bonuses most are happy to still have a job.  They have prepared their spouses that there will be no bigger bonus this year.  Christmas will be less jolly than expected.

The agony of the unknown yields to the certainty of settling.  At least it’s over.

The emotional toll this takes every year is debilitating.  Some put up a brave face but no one escapes the feeling of hopelessness.  Many break down publicly and even more do so privately.

3 Things Have Changed Since the Great Financial Crisis

First, a period of robust growth and ever increasing profits has ended.  The world economies are limping by at sub-par growth rates.  Regulation is worse.  Excessive leverage is no longer employed to juice corporate profits

Second, future expectations have been lowered dramatically.  Companies expand more carefully.  They reward much less liberally.

Third, virtually every job has become at risk. Quarterly cost reduction exercises are now the norm. Older division managers are routinely replaced to “take a different direction”.  Other excuses are used but the idea is the same. The result is age bias.

For corporate employees in their 50s this is a dangerous mix.

This is the time that the retirement savings were supposed to add substantially to savings.

A Bigger bonus was Supposed to Provide These Savings

Now income uncertainty is overwhelmed by employment uncertainty.

Worse yet is that most workers are unprepared.

According to the Financial Mindset Study, only 40% of respondents have created a financial plan. This means 60% of American workers are essentially closing their eyes, throwing a dart, and hoping that everything works out OK.

This doesn’t have to be your plan.

I have written a white paper to address exactly what someone needs to do to prepare for lower income or a job loss.

This white paper goes through the 5 crucial steps to take to insure against an uncertain future

This paper offers concrete examples of income enhancing opportunities to offset a diminished career opportunity.

It discusses how to develop a narrative for your friends and family.

This white paper can help you make your own plan and restore your tranquility.

You don’t have to suffer alone while you keep up a brave face.

The Way Forward

I have spent thousands of hours and thousands of dollars researching this plan.  I have developed resources to tackle the most obvious problems.

So, click here to speak 1:1 to me, or subscribe to my quick change program, or join my vibrant community of like-minded folks engaged in this process.

It’s really that easy to change your life.

My most valuable advice has come from my mentors.  I’m happy to share our collective wisdom with you.

Get the help you need, step-by step right here. We have videos to help and a community full of people to answer questions.

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