Here's something to put a little ho-ho-ho in your holiday: A new survey from outplacement consultancy Challenger, Gray & Christmas finds an improved economy and corporate profits will work their way down to the employee level.
In other words -- BONUSES.
The survey of roughly 100 human resources execs in November found 66% indicating that their companies will be awarding some type of year-end bonus/gift. That's 16% more than those who said the same last year.
And while 30% said there will be no year-end award of any type, that's down 14% from 2015.
“The economy has been steadily improving since the Great Recession ended in 2010. This last year was no exception,” said Challenger, Gray & Christmas CEO John A. Challenger. “As it continues to improve, employers will have to rely increasingly on bonuses and other perks to hold onto valuable employees.”
There are bonuses and bonuses
Challenger points out that most workers don't enjoy the type of five- and six-figure bonuses lavished upon Wall Street bankers. “For the vast majority of workers, three and sometimes four figures are likely to be the standard,” he said, adding, “Some may not even get a cash award, but instead receive a gift card, gift basket or some other type of material object. Our survey shows that the structure of the bonus or gift varies widely.”
According to the survey, 15% of employers provide a non-monetary gift to all employees, such as a gift basket or extra vacation day. Another 11% plan to give employees a small monetary award of $100 or less.
At the same time, about 40% give larger monetary awards that vary year-to-year and worker-to-worker. These can be based on the overall performance of the company, the performance of the individual, or some combination of the two.
Why the increase?
A major factor fueling year-end bonuses is the fact that after-tax corporate profits steadily increased throughout the year, after falling to a 17-quarter low to close out 2015.
The latest data from the U.S. Bureau of Economic Analysis show third-quarter profits of nearly $1.7 trillion -- were up 5.2% from the same period a year ago.
With profits on the rise, about 18% of survey respondents said their companies were upping the amount of year-end bonuses. Still, most employers (73%) plan to keep bonus levels unchanged from last year.
“Despite the lack of six-figure Wall Street-like bonuses,” Challenger said, “most employees still appreciate the year-end bonus. Mostly, they want to know that their hard work is recognized and appreciated.”