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Juan_Tamad
Board Royalty
Joined: Jan 29, 2007
Posts: 6230
Location: Smoky Mountain
Status: Offline
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 Posted:
Jan 29, 2008 - 06:04 PM |
 
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| Post subject: Bonus |
Its bonus time again.
Our company gives our staff a one month bonus every year, we make money or not. (more if we make a good profit) Is giving one month the common practice? |
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what is moral is what you feel good after, and what is immoral is what you feel bad after |
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mrpango
Low Seater
Joined: Jan 26, 2007
Posts: 3274
Status: Offline
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Jan 29, 2008 - 06:07 PM |
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the company I work gives 1 month's salary as bonus before new year too.
there is also another bonus in July (1 month's salary) |
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Well, may as well start a blog http://www.sinocracy.com/ - click at your leisure! |
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chingiskhan
Veejay
Joined: Apr 24, 2007
Posts: 2198
Location: Shanghai
Status: Offline
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Jan 29, 2008 - 06:22 PM |
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For some companies it is written in the contract so it's compulsory. Some give 2 or 3 months bonus, all depends how the packages are structured. |
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DesertSpider
Post Roaster
Joined: Jan 19, 2007
Posts: 4413
Location: SHANGHAI, CHINA
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Jan 29, 2008 - 06:39 PM |
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Pay for performance only, no performance = no bonus.
Getting a bonus just for showing up is ridiculous any way you cut it - cultural norm or not.
Like Chingis said, you need to structure your compensation packages such that people don't just sit on their asses all year and wait for their payout. |
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chingiskhan
Veejay
Joined: Apr 24, 2007
Posts: 2198
Location: Shanghai
Status: Offline
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Jan 29, 2008 - 06:49 PM |
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Many companies get around it by simply taking the annual salary and dividing by 13 so they don't actually get any extra, but rather, the employer is just holding back some of it till new year. |
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amig
Barker
Joined: Apr 26, 2007
Posts: 125
Location: suburbia
Status: Offline
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Jan 29, 2008 - 07:04 PM |
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Really depend on the type of work you do and the company. A friend of mine gets 6 mths bonus, and he is in the banking sector. Working in the civil service will usually entitled you to a 1 mth bonus. IT companies used to splurge on their employess with 3 mths bonus...not anymore. |
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leidelaohu
Wonder Wit
Joined: June 11, 2007
Posts: 3725
Status: Offline
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Jan 29, 2008 - 07:25 PM |
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| DesertSpider wrote: |
Pay for performance only, no performance = no bonus.
Getting a bonus just for showing up is ridiculous any way you cut it - cultural norm or not. |
It's not really a bonus tho. We call it a bonus because there is nothing like this in the west. If anything, it's a case of the employers screwing their workers by saying "Our salaries are low but we pay a big bonus every Spring." That has a tendency to keep the worker tied to the company until after Spring Festival. Then they take their money and go to the new job they've been scouting for the past six months. As it is now it's not such a glorious situation for either party but that's how life is, sometimes. |
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chingiskhan
Veejay
Joined: Apr 24, 2007
Posts: 2198
Location: Shanghai
Status: Offline
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Jan 29, 2008 - 07:28 PM |
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Yes, it's loading the annual salary at the back end. I'm against this as it just means everyone leaves in February. If you just pay them equally over 12 months, then at least people leave at different times of the year and helps to avoid a staff crisis in February. |
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underh20
Shanghai Royalty
Joined: Sep 27, 2006
Posts: 9647
Location: EOA Seminar
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Jan 29, 2008 - 07:34 PM |
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In most Chinese companies, the bonus is just an accounting trick just like Chingis stated. |
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CoffeeHawk_0
Board Buddha
Joined: July 14, 2005
Posts: 14380
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Jan 30, 2008 - 07:24 AM |
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^yeah, they basically get a 13 month salary per year, it's an accounting trick. |
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SnappySammy
Shanghai Royalty
Joined: Nov 01, 2007
Posts: 9729
Status: Offline
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Jan 30, 2008 - 09:12 AM |
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You may call it a trick. But all my people get a extra months pay. its part of their deal. I always thought is was the standard. |
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Yank My Doodle It's A Dandy |
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CaptainCook
Rocker
Joined: Mar 20, 2007
Posts: 684
Status: Offline
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Jan 30, 2008 - 09:21 AM |
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Trick or no trick... we all know that it is very common here in China and it is not always written in their contract. It is also part of the Chinese custom that they will spent big for the Chinese NY so it is a win-win for both parties.
The tricky part is that some employer I know decided to removed it due to poor company results or replaced it with a holiday package. |
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chingiskhan
Veejay
Joined: Apr 24, 2007
Posts: 2198
Location: Shanghai
Status: Offline
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Jan 30, 2008 - 10:12 AM |
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Perhaps trick is too strong a word, but I think the reason some people label it as a trick is because as I said, if I have an annual budget of 120,000 rmb for that position, I will simply divide by 13, so I pay 9230 RMB per month and not 10,000 per month.
And often it IS written in the contract. It's written into mine. |
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CaptainCook
Rocker
Joined: Mar 20, 2007
Posts: 684
Status: Offline
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Jan 30, 2008 - 10:19 AM |
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^^wow, your company has budget for each position?....you must be working for a big company with a proper HR department. The company I know of pay their workers what they can get away with.
Good to know that their are decent Chinese companies in China  |
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chingiskhan
Veejay
Joined: Apr 24, 2007
Posts: 2198
Location: Shanghai
Status: Offline
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Jan 30, 2008 - 10:35 AM |
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Yes, believe it or not, some companies here do actually do budgeting, but I wouldn't go as far as saying our company is decent  |
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BoardBiatch
Talker
Joined: Jan 23, 2008
Posts: 119
Status: Offline
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Jan 30, 2008 - 10:47 AM |
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the real salary of many locals is well hidden; 13 month salaries, housing subsidies, food subsidies, bonus'. China labor (in Shanghai) is not 'low cost', especially when inefficiencies and quality are factored into the equation.
I like paychecks. |
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get out of the damn way! |
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underh20
Shanghai Royalty
Joined: Sep 27, 2006
Posts: 9647
Location: EOA Seminar
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Jan 30, 2008 - 10:54 AM |
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Not low cost, but certainly lower cost. |
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SnappySammy
Shanghai Royalty
Joined: Nov 01, 2007
Posts: 9729
Status: Offline
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Jan 30, 2008 - 11:09 AM |
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| BoardBiatch wrote: |
the real salary of many locals is well hidden; 13 month salaries, housing subsidies, food subsidies, bonus'. China labor (in Shanghai) is not 'low cost', especially when inefficiencies and quality are factored into the equation.
I like paychecks. |
China Labor is very Low cost. and for the most part they are great employees. |
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Juan_Tamad
Board Royalty
Joined: Jan 29, 2007
Posts: 6230
Location: Smoky Mountain
Status: Offline
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Jan 30, 2008 - 11:27 AM |
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lower than Vietnamese labor?
With the RMB appreciation, its starting not to be that low. |
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what is moral is what you feel good after, and what is immoral is what you feel bad after |
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yinlin
Rocker
Joined: Feb 26, 2007
Posts: 643
Status: Offline
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Jan 30, 2008 - 11:52 AM |
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you should say RMB appreciation or USD depreciation in the global context?
RMB against pound/ AUD/ SGD where you still don't feel the big impact as much as USD.
If you said you have to pay more in the labour cost due to the GDP growth and inflation rate in China, it seems more reasonable to me.
my 2 cents |
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chicane
Barker
Joined: July 26, 2005
Posts: 155
Location: clueless.....
Status: Offline
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Jan 30, 2008 - 11:55 AM |
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now that we're on the subject of bonus before the new year, what abt Hong baos? I am giving my guys 1 mth bonus due this week - and was wondering what abt hong baos? What is the minimum sum? And is the Hong bao the equivalent to jiang jing - which i think it means 'performance bonus'...? and since i will be giving them a mths' bonus, does this means the hongbao is not needed....?? I am sooo confused....  Help pls  |
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yinlin
Rocker
Joined: Feb 26, 2007
Posts: 643
Status: Offline
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Jan 30, 2008 - 11:58 AM |
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talent shortage is definetely a issue (if not big issue) in top tier cities (not knowing the lower tier cities situation) and sometimes our projected budget is not even enough to be competitive in recruiting mid to senior range executives ideally fit into your vacancy where you can forget abt how perfect the situation you could structure the package into 13, 14 or 15 months. On my opinion, it is simply an EXTRA BONUS to your employees (for reward or china custom). |
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chingiskhan
Veejay
Joined: Apr 24, 2007
Posts: 2198
Location: Shanghai
Status: Offline
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Jan 30, 2008 - 12:00 PM |
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Yes I think Yinlin makes a fair point - the RMB was tied to the USD for many years and so was artificially kept low while now it is gradually gravitating to its real value. But against many other currencies there was never any peg, so there's been very little appreciation if any against say, the British pound, because it is already at it's natural market value. |
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underh20
Shanghai Royalty
Joined: Sep 27, 2006
Posts: 9647
Location: EOA Seminar
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Jan 30, 2008 - 12:01 PM |
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| TwitTwit wrote: |
you should say RMB appreciation or USD depreciation in the global context?
RMB against pound/ AUD/ SGD where you still don't feel the big impact as much as USD.
If you said you have to pay more in the labour cost due to the GDP growth and inflation rate in China, it seems more reasonable to me.
my 2 cents |
You did study basic math and finance & economics on your planet, right?
If the RMB appreciates, it does so against most every currency.
RMB is also a factor in salary expenses for major corporations whose operating currency is US$. |
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underh20
Shanghai Royalty
Joined: Sep 27, 2006
Posts: 9647
Location: EOA Seminar
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Jan 30, 2008 - 12:02 PM |
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| chingiskhan wrote: |
| Yes I think Yinlin makes a fair point - the RMB was tied to the USD for many years and so was artificially kept low while now it is gradually gravitating to its real value. But against many other currencies there was never any peg, so there's been very little appreciation if any against say, the British pound, because it is already at it's natural market value. |
You are saying that the RMB - Sterling exchange rate has not moved while the RMB - US$ rate has? |
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