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Employee Bonuses Are Shrinking
An article form the Christian Science Monitor reports on some growing scrooge-like behavior currently taking place in corporate America -- bonuses are shrinking. The Monitor writers, "In many companies, the year-end bonus is becoming a quaint memory of earlier times, when an extra envelope from payroll in December was an almost certain reward for everyone in a firm." That's depressing but this comment from Brian Drum, president of Drum Associates in New York is even worse. "We're seeing the holiday bonuses disappear," says Brian Drum. The article goes on to report that a 2005 survey found 59% of companies do not award a holiday bonus -- but many do offer a performance-based bonus.
In a 2005 survey by Hewitt Associates, 59 percent of companies said they would not award holiday bonuses. But more than three-quarters of firms offer performance-based bonuses that must be reearned each year.
Among 1,500 small businesses, 39 percent plan to give employees holiday bonuses this year, according to Constant Contact, an e-mail marketing service for small businesses. That is up 2 percent from last year.
"For small businesses, cash flow and cash management are more difficult issues," says Gail Goodman, CEO of Constant Contact. "It is harder to see out to the future and understand where cash will be next quarter and next year. It takes more confidence for a small business to pay a bonus."
Whatever a company's size, employees are frustrated by a "lack of clarity about how one qualifies for that bonus," says Bill Kuntz, vice president of Princeton One, an outplacement firm. "They want to be treated fairly and have clear expectations."
If you like bonuses you might want to switch to a career in the financial-services industry. They pay the highest bonuses according to the article. Some companies are also handing out gift cards this year. Another point made in the article is that bonuses are more difficult for smaller companies where the prospect of future earnings is less certain. (via Monster Blog)
Posted on December 11, 2006
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Workers Have Vastly Different Reward Needs
SHRM Online reports on the findings of a study that show workers have vastly different needs when it comes to rewards and recognition. The findings show that rewarding employees can be complicated. One example is that what is considered enjoyable by one worker may be embarrassing for another.
"For some, being honored in front of one’s peers is a great award. For others, the thought of being put on display in front of their peers embarrasses them," he said in a press release. "It depends on the culture and preference of your particular employee base."
Here are some of the findings from the survey.
70 percent receive verbal praise, but only 49 percent want it. Then there's the 21 percent of workers who want verbal praise but aren’t hearing it.
40 percent who want written praise receive it.
30 percent who want to be singled out through a special event are recognized that way.
29 percent who want a cash bonus as recognition for their work receive it.
27 percent who want incentives such as award merchandise, gift cards or trips receive them.
27 percent who want an award such as a trophy or plaque receive it.
The article says that the widely varrying employee needs means that managers need to understood workers better to figure out what they want. Employees also need to try and indicate their wants and needs to employers. The article said only 10% are completely happy with their company's reward program so clearly there is a great deal of miscommunication going on. The 10% could also mean that employees have been unhappy with bonuses or the rate of salary increase because of the overall slow economy.
Posted on February 8, 2006
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Just 13% of Employers Plan Cash Bonuses
Workers expecting a holiday bonus this year should not get their hopes up too high. An article on CNN says only 59% of employers plan a holiday bonus and of the 31% of employers giving a bonus only 13% are giving a cash bonus.
Fifty-nine percent of companies say they won't be giving out holiday bonuses in any form this year. And of those that will, only 13 percent said they will be giving out bonuses in cash.
The rest will opt to give food gifts, gift certificates or retailer gift cards, according to a survey released Monday by Hewitt Associates.
Among the companies that said they would be giving cash, the average holiday bonus planned is $683, but the cash bonuses slated range between $25 and $2,500.
Employers said they would spend between $10 and $150 on gift certificates; $10 to $50 for food gifts; and $10 to $100 on retailer gift cards, according to Hewitt's survey.
The article also said that 9% of employers are giving some or all of the money typically allotted as bonus money to charitable organizations which is kind but probably not what hard working employees want to hear.
Posted on November 14, 2005
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