One of my friends in the Big 4 said their merits don’t go into effect until June and that’s when their bonuses pay out from the year before as well.

Is this retention tactic or due to calendar end? It seems like a long time to have to wait for a bonus and compensation review.

When do you get notified of your merit and when does it go into effect?

When does your bonus get paid out?

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It is likely to be related to the company's fiscal yr. I think pwc and Deloitte fiscal yr runs from June-may and pwc runs July 1- June 30th. (Someone correct me if I'm wrong)

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It's both. They'll say it's all because of the calendar, but the effect is the same either way. You're way less likely to leave in February if you know your bonus drops in June. Every company that delays comp like this knows exactly what they're doing, they just don't call it a retention strategy. Bonuses are paid out immediately post-review, same with merit increases taking effect. Always done by the end of February or early March at the latest.

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