A significant portion of the workforce is poised to reconsider their employment as year-end bonuses become a contentious issue.
- Over half of professionals (68%) would consider leaving their jobs if their year-end bonus is withheld.
- Data from a salary survey reveals that only 52% of companies have budgeted for bonuses this year.
- There is a notable disconnect between employee expectations and company budgeting for bonuses.
- Flexible work arrangements and competitive salaries are also emerging as key employee priorities.
Over half of professionals, specifically 68%, have indicated a strong likelihood of reconsidering their current employment should their year-end bonuses not materialise this January. This finding highlights a critical concern in the realm of employee retention.
The insights stem from an annual Salary Survey conducted by a specialist recruitment firm, Robert Walters. Despite high anticipation among employees for bonuses, only 52% of organisations have set aside budgets to fulfil this expectation, leaving a substantial number of employees potentially disappointed.
Furthermore, 34% of employers have already opted to exclude bonuses in their financial planning for early 2024. This decision underscores a growing dissonance between employee expectations and the realities of corporate budgeting.
Year-end bonuses hold great importance in employee retention strategies, with 75% of companies acknowledging their necessity in retaining top talent. Many professionals, 59% to be precise, are anticipating a bonus ranging from 10-30% of their salary.
Nevertheless, about 40% of employees have reluctantly accepted that they may not receive a bonus for their efforts in 2023, reflecting ongoing economic challenges and their impact on compensation models.
Chris Eldridge, the CEO of Robert Walters UK, commented on this situation by emphasising the importance of bonuses as a tool for recognition and motivation. He noted, “A year-end bonus remains a crucial retention tool, influencing almost 4 in 5 employees’ career plans. It serves as recognition and reward for employees’ dedication and contributions, showcasing a sense of appreciation.”
In addition to bonuses, the survey explored other priorities for employees. Flexible working arrangements emerged as a top priority for 36% of respondents, followed closely by competitive salaries and positive work-life balance. This indicates a broader shift towards a more holistic approach to employee satisfaction and retention strategies.
Eldridge further noted that while 2023 presented significant challenges due to economic constraints, companies need to offer a comprehensive benefits package that extends beyond financial incentives to maintain a competitive edge in talent acquisition and retention.
The data clearly indicates that adapting to employee expectations regarding bonuses and work conditions is essential for maintaining a satisfied and committed workforce.
