Company bonuses are back and they’re bigger than last year

💲 Almost all U.S. employers plan to give year-end bonuses to their staff

💲 More than half plan to give more than a year ago

💲 Bonuses can come in other forms besides money

Workers have something to look forward to this holiday season. Bonuses are back, and possibly even bigger.

New research from Robert Half reveals that 95% of U.S. employers plan to award year-end bonuses to their staff.

Of those, 51% said they would be offering more than they did last year, while 38% of companies plan to offer around the same amount as in 2022, Robert Half Regional Director Dora Onyschak said.

What motivates employers to offer bonuses?

Many companies have felt the pressure of the economic uncertainty that’s been currently going on, she said. But many also understand how hard their staff has been working over the past few years, post-COVID.

With elevated job openings and low unemployment rates, companies still face hiring challenges. Rewarding teams can help employers show much-deserved appreciation as well as retain their top talent.

“Quit rates and job openings remain at a very high level. So, employers to know and understand that they need to up the ante to retain and continue to attract top talent. Year-end bonuses can be a really powerful and impactful way to recognize your staff for their hard work,” Onyschak said.

While companies continue to keep an eye on their budget, it’s encouraging to see bonuses back on the table, she added.

What are the bonuses?

But she cautions employees to realize that while employers are extending this olive branch, the bonuses may not be in the form of money.

“It could be in the form of cash. It could be in the form of gift cards. It could be other things like extra time off, a bigger holiday party, and gifts,” she said.

Besides better pay, today’s worker wants flexibility. The more flexibility that an employer can offer, the happier their staff will be, Onyschak said. It’s a great recognition idea and a little bonus that may be good to implement in the new year.

By flexibility, she said that means both hybrid work options. But also, maybe coming in a little bit later or leaving a little bit earlier. It does not have to be that typical 9-5 workday schedule anymore.

Strong health benefits are always a key perk, too. If an employee can save a bit of money because the company is picking up more of the tab when it comes to their health benefits, that’s a great bonus, too, she said.

What if you don’t get a bonus?

Communication is key, Onyschak said. If you were expecting a bonus and did not get one, have an open and honest conversation with your boss. Ask about the company’s current situation and if bonuses were awarded to any employees.

If bonuses were awarded, then ask what you could improve upon to better position yourself for a bonus next year.

If bonuses were not awarded, ask if there are any other incentives for high performers, such as additional paid time off, instead of compensation.

How should employers communicate bonuses to staff?

Employers need to be clear about the “why” when it comes to awarding bonuses. Is it a celebratory reward for all employees or an incentive tied to individual performance?

Onyschak also said employers must be thoughtful about how they communicate the news regarding bonuses. They should schedule private, one-on-one conversations with employees and explain how the amount of the bonus was determined.

Always offer personalized and sincere words of appreciation.

Congratulations if you’re a lucky New Jerseyan receiving an end-of-year bonus from your employer.

Report a correction 👈 | 👉 Contact our newsroom