When a company keeps the same overall budget for payroll but switch a large part of the compensation from bonuses to fixed salary, what does it mean ?
2006-07-06 23:59:39 · 5 answers · asked by Anonymous in Business & Finance ➔ Corporations
It also helps people get mortgages, as Bonuses are often excluded from the Lenders' multipliers.
2006-07-07 00:47:35 · answer #1 · answered by 'Dr Greene' 7 · 0⤊ 1⤋
It depends on how the bonuses are determined. If they're automatically given out no matter what and are pretty standard for all the employees, then moving some to the fixed salary portion is more attractive because the employees get the money sooner and this would be good.
If the bonuses are based on employee performance, then, yes, that would be slightly indicative of not caring as much. It might be a better way to attract employees to work at the company, though, if that is their goal.
2006-07-07 03:43:17 · answer #2 · answered by Arbitrage 7 · 0⤊ 0⤋
1. They are encouraging people to leave as a new set of people will be required.
2. The average age profile of employees have grown faster than the company.
Ramachandran V.
2006-07-07 00:10:43 · answer #3 · answered by sarayu 7 · 0⤊ 0⤋
it depends, if the fixed salaries were small, then it's a good decision. otherwise it can be interpreted like you said, they encourage mediocrity by not stimulating employees
2006-07-07 00:04:45 · answer #4 · answered by Deep Thought 5 · 0⤊ 0⤋
it means they are offering the incentive of security and higher wages on job adverts
2006-07-07 00:11:02 · answer #5 · answered by Anonymous · 0⤊ 0⤋