So the huge compensation email came out today, telling every employee who got a three or above performance review rating, or who is a new hire with no rating, that they will all be getting retro raises in one lump sum. Also, they will be compensated with a bonus they would have qualified for, since the whole merit system is being abolished. I’m shocked that those employees that received a 2, who might be working their butt off to get to a three have been kicked to the curb. Usually this is done because they’re gonna just get rid of anyone with a two or below through layoff. Anyone know anything on that or have an opinion?
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it's a $400 bonus and exclusion from any future bonus schemes..
The September “bonus” is nice, but it is more important to see this with “real eyes” and context, this is the final bonus. This is not a new perk. This is less about appreciating employees for hard work and more about easing us into a major change in compensation structure. This is not a true gain for grade 21-26, this is a loss disguised as a gesture. Feels like a bait and switch, “here is something now, but don’t expect more later.” Many were motivated to work hard for a bonus that was part of their expected income and now they are creating more uncertainty and being very vague regarding what this means for long term compensation. Manager said they spoke to their director who said, yeah we don’t know what this will look like in 2026 in terms of merit increase. Seems like they are “managing morale” by giving one last “gift” to cushion the impact of removing bonuses and the gut punch that creates for those who need the money.
@cg all my past 8-10 years bonus' started with a 2 in front of them and a 5 Exceeds Expectations . This year I was a 4 with a bonus that didn't even break $1k. Have never been a 4. Coincidence? I think not.
Now we know why the sups /mgrs were told to downgrade the scores this year.
Just another way for the C suite to maintain the status quo with THEIR insane bonuses.
@ck I’m not saying this to be rude. If you are sub 27 you are not paid enough here to justify staying.
Your compensation has been enhanced!… from the shareholder/company point of view.
Some are saying this is just a mid-year compensation update, and that could be true. The raise and transition payment are framed as replacements for the discontinued RRP/OPI bonus structure, and the Sept 7 effective date lines up with the end of a pay period, which might explain the timing from a payroll perspective.
But a few things about the timing make it feel intentional.
There were layoffs on July 24, with impacted employees given a final working day of August 7. That is exactly one month before the raise goes into effect. If future layoffs follow a similar pattern, with a last day of employment just before Sept 7, those employees wouldn’t qualify for the raise or the transition payout. Since eligibility is tied to being actively employed on Sept 7, this setup allows the company to avoid those payments entirely by laying people off just before that date if they choose.
It also gives them a clean justification. If someone is rated low on performance, they can frame it as performance-related rather than cost-cutting. Whether that’s the intent or not, the structure makes it possible.
This kind of move isn’t unique to Optum. Other large companies have done nearly identical things before layoffs, either to get people to quit or to prepare for layoffs.
Meta adjusted performance review thresholds and froze bonuses in 2022 before laying off over 21,000 employees. They claimed it was about improving focus, but internal documentation later revealed it was preparation for large-scale cuts.
Amazon shifted compensation from bonuses and stock to more predictable cash payouts, while quietly tightening performance expectations. Layoffs followed in waves.
Microsoft flattened job bands, paused raises, and downplayed bonuses in mid-2023 all before cutting roles in content, support, and training.
In each case, the company made a mid-year compensation change that seemed administrative on the surface but was followed by layoffs, often timed to avoid paying out bonuses or increases.
So while it’s possible this is just a pay structure change, the timing and setup are consistent with how other companies have quietly prepared for workforce reductions in the past. The fact that they announced this was planned last heae doesn't change anything. Layoffs to support globalization are a multi-year thing.
People who had 4 and 5 were reporting they got a whole 300 dollars this year for their bonus. How does that compare to the thousands that your manager and director get. “ Good Job”
Leader here. It’s only 21-26 and it’s to offset the tiny bonus structure for these folks. It has nothing to do with letting people go. This correspondence came out last year that this was going to happen in September.
I did not get an email and I had a 4…
It’s for G21-G26 only.