Most employees (60%) are not expecting a Christmas bonus, while just 8% anticipate a bigger payout this year.
Research by employee benefits technology provider Zest revealed that 44% are also not hopeful of receiving a pay increase in the next year because of a rise in employers’ national insurance contributions announced in the chancellor’s recent budget.
The study found that a large number of employers have already started curbing wage rises throughout this year, with just 43% of workers claiming to have received the increase they were expecting in 2024.
Commenting on the figures, Zest warned that organisations failing to provide good financial incentives risk not only negatively affecting the morale of their workforces, but are also in danger of reducing productivity and losing talented staff.
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Employers must ensure that they can motivate and reward individuals beyond focusing on their pay packets, the company insisted.
The research also revealed that more than seven in 10 (71%) of employees surveyed who are in line for a Christmas bonus would prefer better employee benefits. This is particularly important for 18-34-year-olds, with four in five (80%) preferring them to bonuses.
Nearly three in five (57%) of those polled also suggested they prioritised longer-term financial support, claiming that the Christmas party spend would better invested in their employee benefits package.
These findings echo those of recent Zest research, which showed that while two-thirds (63%) of workers said employee benefits have grown in importance to them when deciding where to work, two in five (41%) believe their company’s package is inadequate.
Matt Russell, CEO of Zest, said: “After yet another tough year, many employees appear resigned to not receiving the financial rewards they’re looking for from their employer.
“If pay stagnates or organisations are unable to offer bonuses, they must ensure they are finding alternative ways to reward employees or they risk falling behind competitors. Employee benefits packages offer a cost-effective approach for employers to reward employees without salary hikes and ensure they continue to attract and retain key talent.”
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