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(CIOZone) By Cara Garretson
A recent survey conducted by outplacement consulting firm Challenger, Gray & Christmas showed that despite hard economic times many companies handed out holiday bonuses last month.
The firm surveyed approximately 100 human resource executives in November; 64 percent of them said their companies had plans to give employees holiday bonuses, up from 54 percent in 2008. And of those companies handing out bonuses, 8 percent said the size of the checks would be bigger than in the past. In 2008, none of the companies surveyed said they would increase the amount of the holiday bonuses.
This trend toward more and bigger bonus checks hints at a better employment environment in 2010, according to John Challenger, chief executive officer of Challenger, Gray & Christmas.
“The survey … suggests that while companies are not quite ready to accelerate hiring, they are cognizant of the potential to lose high performing workers when the job market begins to improve and job creation gains momentum,” says the consulting firm’s blog post.
However, 16 percent of respondents in the 2009 survey said that while they awarded holiday bonuses to employees in 2008, they didn’t plan to this year. That’s an increase from 13 percent who had said in 2008 that they planned to cancel bonuses. This year 4 percent of companies said they planned to give employees smaller bonuses, which is the same percentage as last year.
Still, the increase in the number of companies offering holiday bonuses points to growing concerns among employers that they may lose key employees in the coming year if those valued workers aren’t recognized, says Challenger. Following actions such as decreased hours, pay cuts, mandatory time off, and a reduction in benefits, employers that offer year-end bonuses are hoping this perk will help build employee loyalty in the coming year, he says.
“While some of these measures have saved jobs, they undoubtedly left many workers disgruntled, frustrated and ready to move on as soon as the market improves,” says Challenger. “Year-end bonuses may not ensure the loyalty of all unhappy workers, but they could help entice some to stay aboard.”
The firm says most companies offering year-end bonuses tied the amount of the checks to the overall performance of the company or to an individual’s performance. Others said they offered employees the same amount as holiday bonuses given last year.
In either case, when it comes to holiday bonuses it’s not so much the amount that matters, but the fact that the employer is recognizing its employees’ contributions, says Challenger.
“It doesn’t have to be a Wall Street sized bonus check. Many workers would be happy with a $100 gift certificate to a local restaurant or store. Many would probably be happy with a couple of extra days of paid vacation at the end of the year. Many are simply happy to have a job in this economy,” says Challenger. However, he adds, employees who are happy just to have a job tend to be the first ones to look for a new position when the economy improves, and so holiday bonuses might help retain them.
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