Dive Brief:
- Less than half of employees (42%) said they expect to receive a holiday cash bonus this year, and 34% would consider looking for a new job if they weren’t given one, according to the results of surveys of 1,500 employers and employees by Agital, an e-commerce marketing company. Sixty percent of employers said they plan to give out holiday cash bonuses.
- Forty-three percent of the workers surveyed said they got a holiday bonus last year, and those bonuses most commonly fell between $251 and $500.
- Although most employers said they give out fixed-dollar amounts for all workers, 64% said they adjust that amount annually based on the company’s performance. To that end, just shy of half of employees said their holiday bonus should increase with the company’s success.
Dive Insight:
Holiday bonuses can serve as part of a company’s retention strategy.
Eighty-two percent of employers said the bonuses help boost morale, and 79% said they’re essential to remain competitive. Meanwhile, 55% of employees said the gesture plays a significant role in their job satisfaction.
The companies that don’t plan to offer holiday bonuses pointed to company policy and budget constraints as their top reasons for not doing so.
But if holiday bonuses aren’t an option, there are other routes companies can take to show appreciation, Agital said. More than 3 in 4 workers would like additional paid time off, while others wanted an end-of-year gift or an extra benefit like a wellness stipend or a gym membership.
The majority of employees said they would prefer to get a holiday bonus over company stock options or PTO of the same value, but more than 2 in 3 would rather have a four-day workweek. And 59% said they would prefer fully covered health insurance.
Companies also need to be aware of worsening pay inequity through holiday bonuses, according to a December 2021 report by compliance software company Trusaic. Holiday bonuses that are a percentage of workers’ salary instead of a fixed dollar amount can perpetuate pay disparity, the report found.
