Bonuses are up this season

Challenger Gray and Christmas is reporting that 72 percent of employers surveyed are planning to offer some type of year-end bonus this year, up from 53 percent a year ago.

Challenger, an outplacement firm, received 100 responses to a survey.

“Many companies enjoyed increased profits this year, along with increased productivity.  The fact that they achieved that without a rapid acceleration in hiring or capital investment means that existing employees were asked to deliver better results with fewer resources.  Even with many companies still not enjoying pre-recession business levels, it is clear, at least among our small sampling of employers, that they are duly recognizing the hard work and achievements of their workforce,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas.

While many employees have been stretched thin over the years by anemic wage growth, the survey indicates not all boats are going to be lifted with a bonus this Christmas.

  • 28 percent of employers will provide bonus checks based on the company’s overall performance.
  • 17 percent said their companies will award bonuses to individuals based on accomplishments for the year.
  • 25 percent said they will increase the year-end bonus this year.
  • 14 percent will award employees with $100 or less
  • 13 percent said the bonus will be a token of appreciation and not money
Rob Varnon