FYI About Company Bonuses — They Also Tell You The Best Time To Resign

Is there a right time to resign?

Whether you’re new to the working world or not, you’ve probably asked this question to yourself or someone else at least once. Timing, after all, is one of the most important factors to consider when making a decision about your future in a company. But another factor that you might want to consider moving forward? Company bonuses.

These forms of incentive, may it be your mid-year bonus, Christmas bonus, or performance-based bonus, aren’t typically what come to mind in this crucial stage of your career. But yes, they have a lot more say than you can think of, especially when we’re really going into the nitty-gritty of your resignation timeline as an employee.

Also read: 5 Important Items To Write In Your Resignation Letter

The “best” time to resign according to reports

Time and again, career reports including the JobStreet Bonuses Report have revealed that the best time to resign is between December and July. Why could this be?

For one, two of the most coveted company bonuses are given out around this time. There’s the year-end bonus and the mid-year bonus. Often, these values can go as high up as one’s monthly salary, which would give contemplating employees at least a month’s time to support themselves while looking for or transitioning to a new job.

Moreover, a 2022 JobStreet Bonus Report found that 77 percent of companies said that December is the most popular month for the release of bonuses. January, the month after, is likewise the most popular month for employees leaving their respective companies. But should this date mean that it is ideal for you to resign at the same period?

What are the types of bonuses?

Nowadays, bonuses come in different forms and are handed out in various ways. Certainly, they are no longer the usual ones you normally hear about or experience for yourself. However, the following are spot-on indicators of when you should follow through with that resignation letter.

1. 13th Month Pay

This is perhaps the most popular type of bonus companies give in the Philippines. Given at the end of the year, this mandatory monetary benefit is computed based on the employees’ total basic monthly salary divided by the number of months you worked for the relevant year.

2. Christmas Bonus

It’s not the holiday season without the usual Christmas Bonus for Filipino employees. Though, unlike 13th Month Pay, this incentive is completely optional for employers to grant to their staff. Likewise, the amount of which is decided solely by the former.

3. Mid-Year Bonus

Although seeming to be a counterpart of the 13th Month Pay given every year-end, Mid-Year Bonus is mostly available to select sectors such as key government offices. It’s also equivalent to one’s monthly basic salary and given starting every 15th of May.

4. Performance Bonus

As the name suggests, this type of incentive relies on how good you are when it comes to performing your tasks. Did you reach your sales target for a certain period? Did you do anything outstanding to accomplish a business goal? If yes, then you may qualify for a Performance-Based Bonus.

5. Spot Bonus

Almost identical to the above is the Spot Bonus. The main difference is that there is sometimes no specific target or goal in mind to give this incentive. Most of the time, they are literally given on the spot by your employer as an appreciation for something you recently accomplished.

Also read: How To Check Your Employment Contract? 5 Tips To Protect Yourself

Things to consider about incentives when resigning

We’ve established how incentives are a good way to gauge the best time to resign from a company. But how do you really know when they will apply to you or how you can make the most of it for a smoother departure?

Are you entitled to the bonus at all?

Not only are some bonuses optional as opposed to mandatory, but they are also applicable to a few sectors or employees as well, as discussed briefly above. For example, a city government in Metro Manila will only give out Mid-Year Bonuses to regular employees. If you are only working part-time or under a contractual agreement in your workplace, then you are not eligible for the said bonus.

Similarly, if you are expecting to get a Performance Bonus or Spot Bonus but only did the bare minimum with your tasks, or if someone else is visibly doing better than you, then it is less likely that you will receive either of these incentives. It’s best to clarify such conditions before setting any expectations on what bonuses you will get.

Like with most things, timing is everything!

The phrase may sound like a broken record, but as universal and cliche as it is, it is also very much true when resigning according to bonuses. As mentioned earlier, one of the best times to resign is after you’ve taken home your 13th Month Pay. Besides being mandatorily given at a set period each year, it also gives you a chance to welcome the incoming year on a fresh note.

But more than that, 13th Month Pay strictly follows a schedule that employers have discretion over. For instance, an employer plans to distribute the said incentive on December 15. However, say, you tender your resignation on November 14, following the standard 30-day notice period for leaving employees, your last day in the company is December 14. Meaning, you are no longer qualified to receive the bonus.

You may think that this is unfair at first, but understand that the decision still lies with your employer. In fact, the same is true for Performance Bonus. If the employer is aware of your plans to resign in a few days’ or weeks’ time, they may not consider you for the incentive. If you are expecting the bonus, it would be wise to delay your resignation for now. Remember, bonuses serve different purposes. It may be for retention, a form of reward, or attraction to let you stay.

Plan matters beyond your resignation

Suppose you’ve figured out the bonuses you are expected to receive, does that make it safer to resign then and there? Not totally. Practically speaking, it’s true that resigning should be a carefully thought out move on the part of the employee. That is, when the reasons behind it aren’t urgent in nature.

With that being said, you should make a detailed plan of the things you would do before and upon officially departing your company. With the added budget you have thanks to your incentives, can you support yourself while looking for your next employment? For how long? Essentially, you will want to make sure that even if you will receive your deserved bonuses, you won’t be burning bridges with anyone from both your current and future employer.

Also read: How To Tell Your Boss You’re Leaving For A New Job

More career tips from JobStreet

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If you’re still having doubts about how to properly resign from your company and how to take into account company bonuses in the process, go to Career Advice. Searching for your next job? Be sure to create or update your JobStreet profile. Download the JobStreet mobile app on Apple Store and Google Play, then create or update your JobStreet profile !