Wondering about how the whole bonus pool procedure works, if anyone knows and cares to comment. Does my immediate manager get a pool of money, and distribute as he sees fit? Example: Manager gets a $50k bonus pool, and has 10 direct reports. Can he give out say $20 or $25K and keep the rest? Is there any oversight on this process from higher up managers? Do certain teams/orgs in GT&O get more of a pool etc.?
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Managers have no very little to no discretion. We are given a pool that has been chopped up and spread across the units pretty much based on overall guidance of "take the total up (or down) X% YoY by LOB.
Then we go in the HR system, see the names, what their amount was last year, and try to make the pittance pool work across everyone.
Some managers just spread it across. Others may give a strong performer a little more by rounding up and yes, nepotism is unfortunately the game for many.
If I don't care if you leave, I'll low ball you. If I depend on you, you'll get more.
We are coached to say "Your bonus is determined by the company's overall performance, the LOB performance, the region, the local market performance and by your own performance." (in that order)
So by the time it we get to the individual, it does not really matter at all. You just have to hope the company does well and you're in a strong LOB.
I think they gather on their yachts drinking pina coladas and throw darts as to who gets the higher bonus, probably high as a kite. It's about as logical as that and no more. What else would you expect from these clowns? Logic? Objective fact-based decision-making? Based on actual results? 1 for you, 10000 for me and be thankful you have a job.
B3 gets the bonus pool(s) to divide up. There are two separate pools for B4 and B5 amongst the LOB. B3 cannot keep the pool funds for him/herself. This alignment of funds takes place in late Oct each year.
The bonus awards and raises are decided and entered months before you document your accomplishments and have your annual with your manager. The annual review process is a perfunctory exercise.
Bonus pool = nepotism. That’s how it works.
It may work slightly different depending on the area within which you work, but in all cases there are multiple levels of oversight - it's not a one person decision.