WHAT TO SAY · PAY AND PROMOTION
How to tell an employee their bonus is smaller than expected
Tell them before the payslip does. Give the number, the reason, and what would change it next time.
Before you start
- Know how the bonus was calculated and what you can share.
The script
- OPEN WITH
[Name], I wanted to tell you about your bonus before it is paid, so it is not a surprise.
Your bonus this year is [amount], which is lower than [last year / you might have expected].
The main reason is [company results / the bonus pool / your rating].
[If performance-related:] What would make the biggest difference next year is [specific].
I know this is disappointing. What questions do you have?
Replace the [brackets] with real details. Say it in your own words; the structure matters more than the exact wording.
If they say…
“I worked harder than last year.”
I saw that, and I want to recognise it. [Explain the factor outside their control, if that is the reason.]
What to avoid
- Letting them find out from the payslip.
- Blaming "the formula" without explaining it.