Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

BonusesPay & benefits

Bonus schemes still in use by 80% of firms

by Nadia Williams 5 May 2009
by Nadia Williams 5 May 2009

The majority (80.3%) of employers are still operating bonus or incentive schemes, according to recent research from Personnel Today‘s sister publication IRS Employment Review.

The survey of 122 organisations â€“ covering 599,800 employees â€“ showed that bonus schemes are used by 91.3% of manufacturing and production sector respondents, and 83.1% of private sector employers, compared with 50% of public sector respondents. And about one-third of employers that currently did not have a bonus scheme were planning to introduce one.

In the midst of the economic downturn, bonus schemes have become a key reward tool for many employers.

Employment law specialist Pam Loch, commenting on website HR Zone, said: “During a recession, employers will want to retain the best employees, and to achieve this they will still have to consider the overall packages they offer their staff. Incentivising their employees will remain an important, if not [the] most important, factor in managing business through tough times.”

However, the economic downturn has had a significant impact on the value of such payments, with fewer than one in five respondents (17.9%) expecting this year’s bonus pot to be any bigger than it was in 2008.

The most common type of bonus scheme is one that measures a combination of company and individual performance, offered by 44.9% of respondents with a scheme. The most common type of scheme among public sector respondents are individual performance bonuses, used by 75%. Private sector respondents preferred schemes linked to a combination of company and individual performance (52.4% of manufacturers and 47.8% in services), followed by company performance (33% and 20.3% respectively).

More than half (53.7%) of respondents either ‘agreed’ or ‘strongly agreed’ that their organisation’s bonus scheme had had a positive impact on company performance.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

However, the objectives behind bonus schemes varied widely between sectors. Manufacturers’ main aim is to improve individual performance (85.7%), while the goal in services is to improve company profitability (73.5%). And in the public sector, respondents were seeking to improve individual performance (62.5%) and promote sustained high performance (62.5%).

The most common type of bonus payment is a percentage of salary, used by 68% of respondents with a bonus scheme. This is followed by variable amounts (22.7%) and flat rate payments (14%). The remaining 9.3% awarded salary increments, and bonuses as a percentage of company profits. Three-fifths (60.8%) said their organisation placed a ceiling on bonuses, while bonuses at the remaining 39.2% remain uncapped.

Nadia Williams

previous post
Graduates offered £20K to train as social work managers
next post
Disability ruling: Dumfries & Galloway v Adams

You may also like

Legislation could block bonuses at Thames Water

16 May 2025

Next to improve wage-setting transparency after shareholder pressure

16 May 2025

Ofgem workers ballot for strike action

2 May 2025

What will reward look like in 2035?

28 Apr 2025

NI increase has not caused ‘knee-jerk reaction’ in...

23 Apr 2025

Post-pandemic starters seek more pay for on-site working

10 Apr 2025

Maisie Adam to host Employee Benefits Awards 2025

3 Apr 2025

Most businesses will need to adjust wages in...

28 Mar 2025

‘British people too polite to talk about salary?...

28 Mar 2025

Senior HR pay rising faster than junior roles

28 Mar 2025

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+