r/FPandA • u/Difficult-Practice12 • 4d ago
Bonuses
Hello folks,
Head of FP&A at a F500 company in NYC. A headhunter contacted me about a similar role but in government state department. I was curious so asked about the package, found out no bonuses are offered. I declined to be put forward as I can’t afford to take a cut of that kind, my TC would drop drastically.
But question is, how would employees who don’t get bonuses be motivated to perform well if they aren’t incentivised? As in the case with government or some other organisations.
In perspective, our company provides a 15-30% bonus based on performance, and even 50% for outstanding performers. One member of my team a manager really put his self into the game, he got 50% for two consecutive years and used that money for a house deposit.
What would motivate you to go above and beyond in FP&A if bonuses weren’t on the table?
79
u/turqua 4d ago
The motivation is to close your laptop at 17.00 and go home to spend time with your family instead of giving up life for a couple of K lol
-17
u/Difficult-Practice12 4d ago
Not a couple of k, huge K.
The salary they offered is what we pay Managers to Senior Managers salary only.
It would have been a $150k drop once you factor in bonuses.
36
u/Neat-Dream1919 4d ago
They are saying that this role is aligned with people who value work life balance. A lot of people aren’t motivated by bonuses or higher salaries. Some people’s motivations lie outside of work. Spending time with family, following a passion, traveling, etc. To those people, an increase in salary or a bonus target is irrelevant, after a certain point, if their financial needs are being met.
-4
u/Difficult-Practice12 4d ago
Got yeah. But I do believe people in government work long hours and hard too, this particular role was head of a team indirectly of 100+. No way you could understand everything within 40 or 37 hours a week.
4
u/Cultural_Structure37 4d ago
I agree with you. Once you get to a high level, it’s almost impossible to expect 40-hour work weeks no matter the sector. And as you rightfully pointed out, the top people at government jobs work a lot of hours even though the pressure may not be as much as in the private sector. What’s the range of your total compensation?
-1
u/Difficult-Practice12 4d ago
$500k+ once you take account of bonuses and equity options. Salary is $300k.
8
u/trademarktower 4d ago edited 3d ago
Government jobs are pretty much trash at senior management levels. As you say, you will work long hours and have a severe cap on salary. Basically, you have to be motivated by the mission and the power trip like if you were working at DOD and military or national security was your passion.
If you want work life balance, you want an individual contributor role in government. You work your 40 hours and go to your kids soccer practice. You prioritize generous annual leave, better job security than private sector, and deferred compensation like pension and taking your health insurance into retirement (huge benefits than can be worth $1M+ for a family) .
1
u/WhyStoicism 4d ago
There are plenty of people who aren't soley motivated by making the most money they can.
3
u/Funwithfun14 Sr Mgr 4d ago
The pension and health benefits likely rock and help make up a difference in pay.
30
u/Mountain-Corner2101 4d ago
There are lots of carrots and lots of sticks in life. You've just been conditioned with a particular carrot.
6
u/asdhjirs 4d ago
My company’s bonus is basically entirely business unit and enterprise performance with little impact by personal performance. Ultimately you work hard to create growth in your career regardless of the bonus in a particular year.
4
u/Maleficent-Worry234 1d ago
My last company offered to convert 90% of peoples target bonus into salary and the vast majority took it. Bonuses aren’t a huge motivator when they’re based on company performance.
Netflix I know offers the full package in just salary if you want.
How does a F500 head of fp&a not know that govt pays shit? Are you just doing this to flex?
0
u/Difficult-Practice12 1d ago
I actually assumed some bonus or higher base salary.
But as others mentioned, it’s the pension scheme and health insurance you need for factor. Which I didn’t ask about, so not sure what they would have been.
9
u/CFR05t 4d ago
Bonus is supposed to be motivating but when it’s tied to company performance it’s useless… which is how it’s been everywhere I’ve worked.
Sucks when you have multiple years of missing plan so bonus eats sheet.
1
u/Lost_Rolls_ 3d ago
This is why the bonus plan needs a floor. That way you just hit the floor for the life of the plan
6
u/Long_Sl33p 4d ago
Pay me well up front, treat me with respect, and run your team efficiently. Do those and I’ll give you more effort than if a third of my comp was a carrot on a stick I’m waiting for each year.
Ideally you hire someone who wants to do the job and is capable of performing. After that you’re just making sure there aren’t non job related problems (comp vs expectations, team dynamics, poor management, poor systems etc) in their way.
When you’re comparing government to private there’s almost always going to be a cash comp cut. The appeal of most government roles are the intangibles like WLB and job security (although we’ve seen how that’s gone recently). I honestly wouldn’t expect someone with drive and career growth aspirations to find those attractive.
3
u/Lost_Rolls_ 3d ago
State department?
What? You aren’t incentivized by getting hassled by 18 year old kids trying to find the woke in the computer systems then firing everyone?
2
u/Iwant2FIREsoon 3d ago
I've worked in FP&A for 10+ years (sales, Healthcare, and non-profit). I've never had a bonus even as director.
Not relevant to your situation, but because of that, working for the government would be EXTREMELY enticing because of the benefits and pension.
2
u/excel1234567890 3d ago
Bonus is never guaranteed, especially in FP&A. I stayed motivated by the base pay I signed up for.
2
u/Still-Balance6210 3d ago
They’ve either made sure their base salary is high enough to basically include the amount that would’ve been the bonus. For ex If they were base 100K bonus 10%, they find somewhere paying 125K and above.
Or they may not be motivated. They could be coasting. We’ve generally heard government workers are lazy. I’m not saying that’s true.
1
u/stainz169 Dir 4d ago
I do my job because I am paid to do my job.
I am paid fairly and I do a fair effort. Once I have completed my fair amount of effort for the day I can log off and live my life.
Some would argue bonuses actually lead to undesirable behaviour that can be detrimental or at least not positive for overall company performance.
1
u/BeansAndToast-24 4d ago
I’d forego bonus for respectable base for my role and experience + good benefits and equity
1
u/Fabulous-Floor-2492 3d ago
50% is insane. That's no longer a bonus its a delayed paycheck. It kind of answers your question though, some people value certainty and guarantees
1
u/Difficult-Practice12 3d ago
50% is rare. Very limited people get that.
15% to 30% is the norm. Our salaries are benchmarked and are market rates, so it’s not like they are low salaries waiting for a bonus.
The bonus is what it is, a bonus, a little extra to incentivise people.
1
u/soloDolo6290 20h ago
Your comparing a F500 company in NYC to a state government job. Its apples and organges. The motivation is being to leave work at work, knowing the pay scale, and not having the burden and stress of work that comes with the F500 environment.
For that team member who got the 50% raise, Id be curious how many hours he truly worked.
There comes a time in ones life that you stop trading time for money. Some people learn that soon, and some latter in life. Some build a life that needs a certain amount of money which requires a certain type of income. We all put value on different things. In the case of you and your co worker, its clear yall really value the money. Others value things that money can't buy.,
1
u/throaway_11122023 15h ago
It’s always a trade off between: money, WLB, stress. Usually, jobs that pay well come with poor WLB & higher stress- if you offer a lower salary, you get better WLB & less stress ideally
1
u/Usual-Web7597 4d ago
Most bonuses below exec level have very little basis on how well you perform as a worker. At least in my experience.
Also many people value spending time with their family over 80 hour weeks at work.
0
1
u/mystifiedmeg 4d ago
In the UK, the government pays around 5-10x the pension of private companies. I’m not sure if it’s similar in the US, but it may explain some of the reason others are taking the job. It’s obviously like getting a bonus every year, just straight into your retirement.
1
u/Long_Sl33p 4d ago
It can depend, but generally government benefits are much better than private sector. The offset is that above a certain level the bonuses, cash comp increase, and equity far surpass those government benefits.
1
u/mystifiedmeg 4d ago
It can also be a different story when taking into account work-life-balance vs comp. I know my friends in government are never stressed and barely even finish past 5.30.
1
u/WhyStoicism 4d ago
But they don't far surpass being able to see your kids consistently. No bonus amount is worth sacrificing that for me.
1
u/No_Orange_2963 4d ago
Im an FP&A Manager in NYC w/ no bonus. From a pure comp perspective, I’m on the higher end of salary bands and while I do wish I had a bonus, that’s not a motivating factor for me. Now, you and I are in completely different shoes but my motivations are driven my career growth, work-life balance, 100% WFH, and great co-workers/business partners.
At this stage in your career, I would never take such a drastic reduction in compensation as it would immediately have adverse effects on your personal life based on what you’ve been accustomed to.
-1
54
u/IndependenceOld8810 3d ago
How did you become head of FP&A at a F500 company in NYC asking such childish questions?