Overheard holiday bonus complaint

[disneysteve]

As for people being upset by not getting at least COL raises, I must say that I would understand. I would be pretty upset if my purchasing power would be eroded each year by my pay not at least keeping up with inflation.

Be glad you aren't a physician. My pay has been flat for several years. We lose purchasing power year after year. If Congress doesn't step in, Medicare is set to cut physician reimbursement by 10% in 2008 so we'll see our income drop even farther.

[InDebtInDC]

Be glad you aren't a physician. My pay has been flat for several years. We lose purchasing power year after year. If Congress doesn't step in, Medicare is set to cut physician reimbursement by 10% in 2008 so we'll see our income drop even farther.

Which do you prefer, capitation or fee-for-service?

[Coleroo]

LOL...this really hits a chord! i have always thought it rude for someone to rely on a bonus. yeh its nice, but you shouldnt rely on it... i was in management for 4 years - and oh boy, last christmas headquarters couldnt afford the regular "big gift card to target" bonus they normally give --- so our local management staff did the best we can to give our 130 operators a nice christmas from us at least (signed every card personally, bought each person treats and candy with our own money, etc).... but oh boy, did we have a riot on our hands. some of them threw their personalized cards back at us and said it was a "slap in the face" because they didnt get their normal Target Card.

psh. ungreatful bunch of... hrm.

those were the same people who continued getting "regular raises" on schedule while us management worked for 3 strait years without any raises.

and..those were the same people who complained about how much their raise was (what else did they expect?? they got 3% yearly and an additional 1% based on good performance!!).

those were also the same people that I (being head HR and payroll person at our center) knew were getting every govermental aid in the book...

all of us on the management staff just had to grin and bear it when our employees complained - they had no clue that we had to forgo our own raises for years.

anyway... so.. people definately expect too much from employers.

[LBTRS]

I think it's bad to plan for money you don't have

With this logic you wouldn't plan for retirement based of future earnings you don't have yet. I "plan for money I don't have" each month when I do my budget...how can you not plan for money you don't have?

You purchase a home, car, etc. based off of money you plan on having in the future. You plan on having the health insurance, vacation time and a certain number of hours for your salary, why not plan for a bonus that is "normally" part of the benefits you get from working at your particular company?

I think it's bad to NOT plan for money you don't have.

[shizane101]

I don't receive a XMas bonus.

I'm with you

[disneysteve]

I "plan for money I don't have" each month when I do my budget...how can you not plan for money you don't have?

There is a big difference between planning for money that you have very good reason to expect, like your regular salary, and planning how you will spend a bonus that you may or may not receive and may or may not be the amount you anticipate. I think that was the point being made.

It is the same as when we advise folks not to include overtime pay in their budget because there is no guarantee they will always have those overtime hours.

[Caoineag]

Actually, I think more people should run scenarios where they lose their regular salary. They might be a bit more conservative in racking up monthly bills. I plan for money I don't have but I also plan on having no money so that I can see what the outcomes would be. Usually I use the plan in the middle somewhere.

Oh and my raises are optional just like my bonuses since its based on what our firm can afford. So I never build my budget for goals with raises accounted for. I prefer planning for the worst case scenario so things are almost always better that I thought they would be.

[thekid]

Be glad you aren't a physician. My pay has been flat for several years. We lose purchasing power year after year. If Congress doesn't step in, Medicare is set to cut physician reimbursement by 10% in 2008 so we'll see our income drop even farther.

I've graduated 6 years ago and must admit that I have been quite lucky. At my previous employer (a large law firm - I'm a corporate attorney), I received raises between 10%-15% each year (even in bad years like 2001-2002 when the firm was simultaneously laying off attorneys) + bonuses which were preset based on billable hours. Since last year, I joined a client of the firm. The place has a collective bargaining agreement. Each year has a 3% COL raise + raise related to additional year experience. I accepted the lower pay that my new employer offered in order to gain much better working hours and a nicer work environement. I would have balked though at the thought of not getting at least COL raises. At the time of my work change, I was offered positions at two major compagnies and a government position which really interested me. All also contained at least COL raises.

I may have been spoiled without noticing it, as this is all I have experienced. I haven't been in the work force for too long though, harsher times may come. Funny how things can easily get taken for granted.

[disneysteve]

So I never build my budget for goals with raises accounted for.

Absolutely. All planning is done based on my current income. I have no way to know when or if I will get a raise or for how much.

[LivingAlmostLarge]

Me too. I didn't even know people had Xmas bonuses. It would be awesome if DH had that.

Everything we do is under the assumption we have zero bonus, zero raise, etc. We don't even count the bonus ESPP, just what is saved in it.

[m3racer]

Which do you prefer, capitation or fee-for-service?

Is this a serious question?

[m3racer]

I don't understand how one expects a holiday bonus unless you signed an employment agreement that guaranteed one.

[InDebtInDC]

Is this a serious question?

Absolutely. Why wouldn't it be?

[m3racer]

Absolutely. Why wouldn't it be?

capitation= lower reimbursement (ie. contracted fees) for higher volume of patients
fee for service= being out of network and being compensated your usual customary fee

It's really a no-brainer for docs. I have yet to meet anyone in the health care field that would opt for seeing cap pts vs fee for service pts.

[InDebtInDC]

capitation= lower reimbursement (ie. contracted fees) for higher volume of patients
fee for service= being out of network and being compensated your usual customary fee

It's really a no-brainer for docs. I have yet to meet anyone in the health care field that would opt for seeing cap pts vs fee for service pts.

I don't want to steer this thread the wrong way so I'll just comment briefly.

Respectfully, "lower" and "higher" are relative terms and are dependent on the contract and what the individual physician considers to be "customary".

Both models incent physicians to reduce exam time to increase profits, but the difference is that capitation promotes prevention while FFS promotes treatment.

To rebut your assertion, I have worked with hundreds of physicians who prefer capitation over FFS. The main rationale for those physicians is that they do not want to feel like an assembly line.

Additionally, FFS does not necessarily imply customary fees. Sometimes you will receive lower than the customary fees and be forced to accept those as payment in full.

This article addresses some of the highlights: How should we pay doctors? A systematic review of salary payments and their effect on doctor behaviour -- Gosden et al. 92 (1): 47 -- QJM

I really have no preference either way. I was simply rebutting your arguments. Comments?