Does Working from Home Affect My Bonus?
07 January 2025
Since the pandemic, working from home has become commonplace and is often near the top of most job seekers’ desires. The numerous benefits of remote work have been widely publicized and debated, and many employees are pushing back when their employers encourage a full “back to the office” work schedule. In an earlier article, we discussed how bonuses are awarded for doing an excellent job and going above and beyond what is expected in your daily duties. This brings us to the question: does working from home affect your bonus?
How Working from Home Can Influence Your Bonus
From our experience, working from home can affect your bonus, but it largely depends on your employer’s policies and how your performance and bonus are evaluated. Many firms have specific criteria for teamwork, project participation, and generally being a positive influence in the office. Remote work is likely to influence these factors. For example, working from home can sometimes hinder communication and teamwork. If part of your bonus depends on these aspects, you’ll need to go the extra mile to ensure you’re actively engaging through online meetings, calls, and other virtual interactions.
A significant part of your bonus might also depend on your manager’s perception of you. This is especially true if your bonus is non-discretionary and not tied to specific KPIs or targets. Some managers will prioritize your work and results over your office presence, while others may place more value on in-office attendance, sometimes even over direct results. In these cases, your interaction with others, your working hours, and any efforts you make to go above and beyond could be crucial.
The Impact of Working From Home on Bonuses
At Redbridge Recruitment, we have observed that employees with a stronger work-from-home culture tend to receive smaller bonuses compared to those who are in the office on a full-time basis. Of course, there are exceptions, but on the whole, this trend holds true.
Tips for Maximizing Your Bonus While Working From Home
If you are working from home and want to achieve your full bonus, here are a few tips to consider and discuss with your manager and/or HR department:
- Understand the company policy regarding bonuses and working from home.
- Ask your manager how they evaluate your performance in relation to your bonus.
- Document all of your achievements. Keep track of anything you’ve done that has helped your team, the company, or anything where you’ve gone above and beyond your normal job responsibilities.
- When being informed about your bonus, ask for clarification on the reasoning behind it. This will help you better understand what you need to achieve next year to meet your goals.
Finally, as we’ve mentioned many times, the vast majority of bonuses in Luxembourg are non-discretionary. We have not heard of large bonuses being paid out this year, as there are many factors that influence a bonus—not just whether you work from home or not. However, we hope this article provides you with some valuable insights and things to consider when it comes to working from home and your bonus.
