Thread regarding Optum layoffs

The RRP and merit has been pathetic for last 5+ years and those were fantastic years financially for the company. We are about to find out what they do in a bad year.

@1k0 RRP is multiplication. Any zero cancels the whole thing.

Do a 0% company factor and zero it out meaning 5s and 1s both get nothing, you're going to have a bloodbath. Only thing you can do then is do zero RRP but auto-promote all 5's up one GL. You can deal with reporting structure changes with a 30% RIF, but it's minimal because there are so few 5's.

You do have to deal with 4's getting the same nothing burger as 1's and 2's which will cause attrition. They could offer RSUs toilet paper but that's not doing much.

No way RRP company factor is zero.

@1jy There are many tricks including lower score ratings (4s get a 3, few 5s at all) and lower payout by rating. Example: the overarching RRP company factor could be 50-55%, but score-based targets are 1-2 at 0%, 3 is 50%, 4 is 70%, and 5 is 90%. Still reserves the option to pay for retention.

0% company RRP would likely do more harm than good pushing good people away. 1% pay cut from the 401k top performers will take, but blanket hit to all variable comp for those who don't get stock would push even more talent out the door.

Expect RRP and merit to be very low to zero this year. The financial headwinds are enormous and many in the People Team are predicting historically low or even zero RRP funding.

@OP If this is truly your first year, your expectation should probably be 0%. Due to the limited funding, managers often sacrifice first year employees to try to give their more experienced people a little more. Just because your offer letter says you are eligible for RRP right away does not mean your manager will give it to you. First year's who receive something, often get a token amount like 2%.

After the first year, do not expect target either. The only years I have been at or over target were years when I was a 5 and received 200% which almost never happens even for 5s. Even those years at 200%, the actual value was around 18% for a 15% target. You will only possibly see numbers that high if you are a top person and there are obvious people on the team to take money from, such as first year employees and low performers. It's a constant struggle to fund high performers if everyone on your team is a decent employee.

In realistic terms, if you have a 15% target, anticipate around half of that or less, assuming there is any RRP.

@mr Depends. Many that came in from an acquisition didn't have a bonus plan and they weren't just added. If you're UHG hired before SD took the reigns then SG28 = 10% target. Going forward, it depends on the role/hiring manager.

Who are the people getting a bonus?

Salary 28 here, clinical and never ever ever once have we even heard of a bonus. Ever.

People getting rif’ed don’t get bonuses. Very insensitive

@gn The bonus is 5% for 27 and formerly 2.5% for 26. The individual factor is less than 100% if under 5 (vast majority). Company factor is 50-55% if we're lucky. This is based on low salaries, so even with a lot of people it doesn't really fill the "pool" for those above. Plus, many 26 and lower have been off-shored.

GL30 is 20% target or 4X GL27 rate on a base salary that's easily double. In absolute terms all else being equal, the GL30 has an 8X dollar bonus vs GL27. (GL26 gets nothing)

GL32 is 30% target, 50% more than GL30 and 12X the old 26 bonus percentage (30 vs 2.5). GL32 base salary is around double GL30 so the GL32 bonus is 3X that of a GL30 in dollar terms (not to mention RSUs)

For every GL32 bonus, let's say $75k, you need to eliminate the combined bonuses of 40-50+ GL26s (~$1500-2000 each). This doesn't factor that GL32s get a personal factor up to 200% AND they're locked in before everyone else is calculated. Doesn't leave much for GL27-31.

None of this includes SLT/ELT with bigger bonuses at 100-200% their base of $300k-500k that comes from a separate pool.

None of this is unusual for corporate merica. But, when your upline empathetically tells you we're all impacted by the same company factor, don't shed any crocodile tears.

@OP it really depends on the business lane. They are all different and have different funding levels. There was a company-wide change where employees below a certain level (26 or 27, I can't recall) don't receive bonuses starting this year. That makes the pool larger for grades above, but if that is actually how it plays out is yet to be known.

Why all the downvotes? OP has a valid question

I've been here for 3 years and I've never gotten a bonus more than 2% of my salary.

@fg
Then you won't be disappointed this year.

A bonus? Must be nice. Our area doesn't have them.

All depends on department. In my department we are fully funded every year, even last year. 2 years ago we were funded at 120%.

No. One can tell you a concrete answer

You get to keep your job- that’s your bonus!

So what will RRP funding be this year? Someone should be able to leak by now. Comp planning starts in a month.

So what is the RRP funding going to be this year? Someone should be able to leak it by now. Comp planning starts in about a month.

b5 is correct. In amazing years they do funny business to pay far below target. This year the stock collapsed and major customers are leaving. I fully expect them to announce BOGO at Dairy Queen coupons for RRP.

Kinda cr-ppy to see people compaining about bonuses as teams are being let go last month and this month.

In all of my many years, I have NEVER seen them give out an RRP even close to Target. It's usually somewhere around 55%-60% of target for funding, and then from there it depends on your rating. If you're a 3 it can be around 60% of the funded amount.
For example - $100,000 Salary. Target 15% = $15k. If funded at 60% that now becomes $9k. Lets say you are a 3 and end up getting 60%, then you'd get $5,400. Nothing is ever guaranteed though, so could be zero.

Expect that if you have a job, you’re lucky and don’t bi--h because you don’t have a bonus

troll