As part of our ongoing “HR Won’t Tell You” series, we’re taking a closer look at the workplace realities that can have a major impact on your career—but aren’t always explained clearly by HR, your manager, or your employer. Our goal isn’t to make you cynical about work. It’s to help you become a more informed, confident professional who understands how organizations operate and knows how to protect and advance your own career. In this installment, we’re talking about bonuses, commissions, and the timing of your resignation—and why a few days can sometimes make a significant financial difference.
You’ve accepted a great new job.
Better title. Better opportunity. More money.
You’re ready to tell your boss immediately.
Before you do, check the calendar.
If you’re expecting a bonus, commission payment, incentive, or other significant compensation, resigning at the wrong time could potentially cost you money.
Compensation plans vary considerably. Some require you to remain employed on the payment date. Others may treat bonuses as discretionary. Commission agreements can have their own rules regarding when money is considered earned and payable.
The career lesson is simple:
Understand the rules before giving notice.
If your annual bonus is scheduled to hit your account on Friday, resigning on Wednesday without reviewing the applicable policy could create an unnecessary problem.
The same thinking applies to commissions, retention bonuses, equity, unused vacation, and other forms of compensation.
Before planning your exit, review your employment documents and applicable company policies. If a meaningful amount of money is involved and the terms are unclear, consider seeking qualified professional advice.
This isn’t about being sneaky.
It’s about making an informed decision.
Companies carefully manage the timing of hiring freezes, reorganizations, layoffs, bonuses, and compensation changes. Employees should bring the same attention to managing their own careers.
There’s another side to this advice: don’t allow a relatively small payment to keep you trapped in a bad situation indefinitely.
If delaying your departure by a week protects a meaningful bonus, the decision may be easy. If waiting six months means losing an exceptional career opportunity, the calculation is different.
Consider the total value of the opportunity, not just your next paycheck.
Get the facts. Do the math. Then decide.
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