Fewer Companies are Giving out Bonuses to Lower-Paid Employees, Is this Good?

There’s tons of arguments regularly about raising the minimum wage, blah blah for lower skilled positions. Fighting back against this are companies who aren’t paying out bonuses to these lower skilled employees.

For many higher ups in the company, there is a 12.9% increase in variable pay (bonuses, perks etc.) according to the Washington Post. The catch is, it’s not being spent with the lower paid employees.

The numbers appear to be evidence that corporate leaders either don’t worry about finding enough talented clerical and technical employees, or don’t know how to evaluate or differentiate the work that they do. Or, with only so much to spend, they could simply be placing their bets on those workers for whom competition is the most fierce. “There is a fixed pot of dollars, so leaders are trying to figure out where they’re going to get the biggest bang for the buck,” .

Essentially, companies are placing bets on keeping the higher ups rather than lower skilled workers. As younger generation people like myself typically don’t stay in a job for more than a couple years, companies don’t want to reward extra for job-hopping.

They, instead, wish to reward loyalty and invest in those who have a future with the company. Most lower skilled positions are a revolving door, which they should be.

How do you feel about this? Obviously, if you are one of the lower-paid employees, you will be upset about this. Think about it from the companies side, bonuses are meant for: Rewarding great work ,but also investing in your future. If you don’t plan to stay at a company for awhile, do you think you deserve the bonus?

Leave a comment and let me know what side of the fence you’re on.

For More: Fewer Companies are Giving out Bonuses to Lower-Paid Employees — Washington Post

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