Employees can anticipate a range of Christmas bonus payouts. The banking sector is noted for its customary practise of awarding holiday bonuses, however not all companies participate.
These days, it’s not easy to locate a company that maintains a tradition of providing annual holiday bonuses to all of its workers. The ebb and flow of the economy and the spending habits of consumers make it more difficult for small firms to afford to give out holiday bonuses. A small firm may need to cut back on holiday perks for employees as the fiscal year comes to a close. There is a distinction to be made between a year-end incentive and a Christmas bonus.
Only 32% of employers planned to give incentives in 2016, down from 52% in 2015, while 28% had no plans to offer holiday benefits, according to a survey by Bank of America. There are a number of options open to businesses that want to show appreciation to their staff through gifts.
A typical end-of-the-year bonus offered by a corporation is between 10 and 20 percent of the worker’s base income. Seventy-five percent of businesses with 100 or less employees planned to give cash incentives in 2016, according to a poll conducted by Business Know-How among its readership of business owners. An employee’s incentive could range from $50 to $5,000 in cash, with the median bonus being $300. Three percent of organisations surveyed by Accounting Principles in October 2016 said they will pay cash bonuses to employees in the range of $100 to $499, while half said their objective was $500 or more.
The annual bonus for salaried staff is often calculated as a certain percentage of the worker’s base salary, however the exact number varies from company to company. The Business Know-How study found that responses ranging from 1% of annual salary (about a half week’s pay) to 10% or more were common. Most bonuses were given out at a rate of one to two weeks’ pay to regular employees.
That’s a bonus that depends on how well you do your job.
In place of a traditional holiday bonus, some companies are switching to performance-based bonuses. This form of incentive is meant to incentivize them toward the end of the year so that the business may meet its financial targets. Some employers, instead of providing a holiday bonus, offer incentive bonuses, which can lead to widespread discontent among employees. Holiday bonuses are typically considered a more heartfelt show of appreciation and thanks by employers than pay-for-performance bonuses.
More than 43% of organisations polled by Business Know-How said they intended to provide staff with non-monetary Christmas bonuses or benefits. According to employees surveyed by Inc.com, the most valued non-cash presents include:
A gift card to a supermarket, department store, or internet retailer
Paid time off
Company apparel or stadium blankets with branding
Hampers loaded with stuff they would not purchase for themselves such as organic juice or premium chocolates