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After Job Cuts, Facebook Plans Lower Bonus Payouts For Some Employees

After Job Cuts, Facebook Plans Lower Bonus Payouts For Some Employees

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After job cuts Facebook owner Meta planning lower bonus payouts for some

Facebook owner Meta is planning to reduce bonus payouts for some employees and assess staff performance more frequently as part of a wider restructuring effort.

On Monday, an internal memo detailed the company's decision. This comes amid weak digital advertising revenue growth and the general economic downturn; additionally, it follows a round of layoffs last November.

Bonuses for employees who “met most expectations”

Facebook owner Meta is planning lower bonus payouts for some employees after making job cuts, according to a report by Reuters. Workers who "met most expectations" in their 2023 year-end performance reviews will receive a smaller portion of bonus and restricted stock award due in March 2024, the report reads.

Last November, Mark Zuckerberg announced a larger round of layoffs as part of his drive to become more efficient with the company's resources. That includes eliminating unnecessary services like free laundry services and cutting staff by about 13% from overall strength.

Employees are an invaluable asset to any business, and bonuses are an effective way to show them your gratitude. But it's essential that the bonus plan you create benefits the entire team, not just some individuals.

One way to do this is by assigning each person a rating on a scale from 1 (top performer) to 4 (poorest performer). Then reward your top performers with higher bonuses than your bottom performers, which will motivate them to keep honing their skills and work harder.

Another way to award bonuses is by linking them to specific company metrics. This will enable your team members to comprehend how their work contributes to the company's success and how they can share in its rewards.

Bonuses can also be used to motivate employees towards positive behavior, such as arriving on time and taking allotted breaks. Retaining top talent helps your company reduce costs and boost profitability in the long run.

When paying bonuses to employees, be sure to adhere to the laws regarding employee compensation and severance. A company may legally alter any aspect of employment - salary or benefits included - provided they give employees adequate notice and allow them time to comprehend the changes.

If your company is considering implementing a bonus plan, be sure to conduct a pilot program first to collect feedback and ensure its effectiveness. Doing this can help you avoid costly errors and guarantee the plan works optimally.

Bonuses for employees who “met expectations”

Facebook owner Meta Platforms has announced plans to reduce bonus payouts for some employees, including thousands who received low ratings in performance reviews. This could result in further layoffs, according to people familiar with the company's plans.

The fundamental question is whether bonuses should be given to all employees who meet expectations in a performance review. While bonuses are an attractive incentive for many companies, they may not be the most appropriate solution when not linked to employee achievement and send mixed signals that set an unfavorable precedent.

Government bonuses are awarded to civil service employees for good performance and contributions on projects. But according to a 2002 survey of federal employees, most are dissatisfied with how awards are handled and feel that they receive insufficient rewards for doing an excellent job.

Furthermore, bonus pools may not always be fully funded by employers, making it challenging for companies to differentiate rewards for top performers. As a result, many organizations have adopted systems in which rewards are based more on annual salary increases rather than specific objectives.

Though this strategy may not be ideal for all organizations, it can be an effective way to motivate and retain employees by creating a sense of belonging to an ambitious team that is dedicated to reaching its objectives. Companies such as Apple, where bonuses are often part of employees' compensation packages, often boast low turnover rates.

But it can also present a challenge for employees who are used to being rewarded for their contributions, which could negatively affect morale. Therefore, many workers may take extra pay for granted and be less motivated by it to improve performance in order to increase earnings.

In the long run, this can erode the relationship between employers and employees. It could create confusion and even distrust between them, potentially leading to legal or financial issues in the future.

At Amazon, employees are graded on a curve during an annual performance review. Ratings range from "exceeds expectations" to "met expectations," with those who meet or exceed these standards more likely to receive bonuses according to Glassdoor reports from several employees.

Bonuses for employees who “missed expectations”

In spite of all the job cuts from tech giants such as Google and Amazon (owner of Facebook), bonuses appear to still be a popular way for companies to retain employees. Whether it's an annual retention bonus, bonus pool for the year or annual performance award - companies across America have been doling out large sums of money in an effort to keep workers from leaving.

Bonuses can be an effective way to retain talent, but they're not without drawbacks. For one thing, they may be taxed and difficult to calculate correctly.

That is why it's essential to comprehend how bonuses operate and the factors that determine their value. This holds especially true when comparing bonuses with other forms of compensation such as salary or a signing bonus.

When measuring bonuses, the most widely-used method is using a multiplier. This measure takes into account how well an employee performs in comparison to their peers; for instance, if their average performance surpasses 50%, then they should receive additional compensation.

It's essential to note that not all managers have the same discretion when awarding bonuses. Some have more stringent requirements, such as needing CEO approval for bonuses worth more than 100% of a team's target award amount.

Bonuses are the ideal way to reward employees for their contributions to a company's success. It also serves as an incentive to keep workers interested and motivate them to work harder, ultimately leading to even better outcomes. A bonus could keep staff motivated during times of labor shortage or an increase in remote employees.

Bonuses for employees who “hit the mark”

In 2022, Wall Street stocks are expected to soar by more than 50%; yet bonuses for stock brokers, investment bankers and hedge fund managers are set to decrease by 22%. According to The Wall Street Journal, JPMorgan Chase and Goldman Sachs have both announced plans to reduce bonuses for some employees.

Companies are now reevaluating their bonus systems in light of this new reality and many are trying to motivate top performers through interim performance-based incentives or milestone bonuses that occur throughout the year. The challenge lies in finding the ideal combination of incentives that will motivate staff members to stay motivated and reach their objectives.

The initial steps should be to establish objectives, identify the correct metrics to measure, and create a plan that is both efficient and achievable. While this may take some effort, having clear goals allows your staff to know what needs to be done in order to meet them and provides them with an incentive when they succeed.

Employees who are given a clear path to reach their objectives are much more likely to stay committed and focused, regardless of any obstacles that come their way. Furthermore, they will be more open to receiving constructive criticism on how they're performing from supervisors and peers.

Some managers opt to recognize their teams for meeting performance goals through more creative methods, such as a referral system that rewards people for excellent work with clients and vendors. Karoline Peralta, asset and property manager for Virtue Properties in Boston, uses this system to keep her staff motivated and help them expand their business.

She rewards team members with cash bonuses when they meet their sales targets and also uses a referral program to reward employees who refer clients to her service providers. While financial rewards are important, she believes it's more important to give employees an emotional reward for their hard work.

At the end of the day, employees want to feel appreciated for their hard work. While they don't need compensation for it, if they feel appreciated for what they do, then they're more likely to stay with your company.

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