1. #1

    Why bonuses are reduced when there is a loss?

    We all as an employee are given a specific amount of bonus at certain time period. But why the company is not giving the bonuses when it faces losses? And when there is a profit to company it never thinks of increasing the amount. Why is this diversification made?

  2. #2
    nurture Array
    Join Date
    Aug 2012

    Re: Why bonuses are reduced when there is a loss?

    Bonus given to employees is directly proportional to the business of the company for that year.

    If there is a good business for the company, obviously more bonuses will be given to employees.

    If not, there will be slight deductions in bonus amount.

    But very less bonus will not be paid by any company.

    However, if your performance is extraordinary, you will get good bonus only irrespective of company performance.

  3. #3
    Madhu M Array
    Join Date
    Sep 2012

    Re: Why bonuses are reduced when there is a loss?

    Hi friend. It is certainly at the sole discretion of the company whether it wants to give bonus to its employees or not. Some companies even dont give bonus to their employees and no one can do anything about it. You have to accept the rules and conditions of your company and in turn abide by them.

    Bonuses are basically a type of incentive to the employees so that they remain faithful to their company and dont think about leaving the job. So many companies provide bonus monthly or yearly to its employees so that they can retain their employees. But of course when the company is facing losses and dont have adequate financial resources i dont think it will be able to provide its employees with bonus as they themselves are helpless due to lack of finances.

    But when there is profit to the company , it may or may not increase the bonus amount . This is solely based on what the company feels and its their own decision and thus you cant expect them to increase the bonus everytime it gets profit. So i think friend you should not worry about such things and enjoy the provisions and benefits provided to you by the company and hence make full use of them rather than worrying over things which are not under control. You can certainly request your manager to increase your bonus amount at the times of profit through a letter but the final decision is in their hands and you cant do much about it. You can just make a suggestion and thats it.

    Good luck friend and Thanks

  4. #4
    ozvert Array
    Join Date
    Nov 2012

    Re: Why bonuses are reduced when there is a loss?

    Hello dear........
    The main thing is...
    If company is getting good profits then it will provide you benefits through bonuses and salary hike...
    If the company is in debts then it choose the ways to reduce expenses and then inturn it reduce bonuses.
    So, working hard will make your company in profits and also increase your bonuses and salary....

    Thank you...........

  5. #5
    SKS Array
    Join Date
    Sep 2012

    Re: Why bonuses are reduced when there is a loss?

    Giving Bonus is Company Management decision.

    Bonus is always given when company are making profits and after distributing profits to Shareholders and keeping some money as cash for business company management also decides to distribute profits as Bonus to Employees.

    So, when there is Loss, No bonus is given to employees is justified.
    But when more profits company may not increase bonus as it keeps more money for some other business works for the company

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