Pay Raise VS. Bonus Program

[BoomBoom]

Our GM has just installed a bonus program for the techs and writers. My bonus is directly affected by what the techs get. The only way for me to get a decent amount is if ALL of the techs make their bonus. It's a great program, dont get me wrong, but its also time for a yearly pay increase and I have been informed by the GM that the bonus program voids out any pay raises. Is this fair? A bonus program should be over and above a regular yearly pay increase. So basically by accepting the bonus program, us writers will never get a pay raise. And how long to you think it will take for the bonus to fall by the wayside?
Thanks for listening guys!!

[robc]

So much of pay is dependent on local market conditions and whether it is feasible to earn a living wage in the good times and the bad. I will say in our current pay plan (on-going) surveys that it isn't unusual this year for many dealerships to be foregoing the annual cost of living types of increases.

I learned a very early lesson working in dealerships - a bonus is great, but as soon as you rely on them as part of your regular income you're setting yourself up for financial failure - regardless how easy or tough the targets seem.

I guess the thought - in answer to your question - a bonus might be considered part of your compensation, but I wouldn't think of one that way. If a bonus is part of your compensation then it is a commission, not a bonus, and it should reflect obtainable targets.

But if the chance of a bonus is your only chance of a raise this year, consider yourself in the lucky category that many aren't even being offered that.

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** Rob, Editor Dealersedge/WD&S **
Help is only a message post away!
robc@dealersedge.com

[BoomBoom]

Thanks for the reply robc. I'm a long time reader, first time post-er. I guess thats where I differ from most with the "Im lucky to have a job" attitude. I have NEVER been a believer in that. I have the "they are lucky to have me here" attitude. I have never had any problem at all finding employment. I think more people should have that view and not let employers take advantage of them. If you give 110% every day and believe in yourself, you will find success.

[pjpeery]

"they are lucky to have me here" attitude. I have never had any problem at all finding employment. I think more people should have that view and not let employers take advantage of them. If you give 110% every day and believe in yourself, you will find success."

very well said

paul