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BonusesLatest NewsPay & benefits

Bonus misery set to depress the workforce

by Mike Berry 29 Nov 2005
by Mike Berry 29 Nov 2005

Most UK employees are likely to be disappointed by their annual bonus, new research suggests.


In contrast to the widely reported bumper pay-outs expected in the City, research conducted by reward consultancy Innecto found that 19% of HR directors said their company definitely wouldn’t be awarding a bonus this year and 40% were still unsure.


Only 41% of HR directors were sure there would be staff bonuses.


In addition, of the 183 HR directors interviewed for the survey, only 18% expected bonuses to be higher than last year.


The vast majority – 68% – said they expected bonuses to be smaller than last year, while 15% said they would remain the same.


The key factors affecting were the general economy (22%) and the market in which their businesses operate (37%).


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Innecto director, Deborah Rees, said: “When profits are down, linked bonuses are obviously cut, but this usually creates a despondent workforce.


“With difficult times ahead, I would advise companies to concentrate on smart ways of keeping employees motivated. Investment in employee communication, clear career paths, constructive appraisals and positive feedback will all pay dividends when bonuses don’t pay out.”

Mike Berry

previous post
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