Dive Brief:
- Incident-based rewards are making a real impact as a way to leverage cash incentives for employees, according to SHRM.
- Ranging from referral, sign-on, spot and retention bonus programs, the concepts are sometimes called incidental or supplemental bonuses. As opposed to variable-pay incentive bonuses given out quarterly or annually, these incentives can happen at any time.
- SHRM cited a new WorldatWork survey, Bonus Programs and Practices, that reveals a modest increase in the past two years among employers offering incidental bonuses. Also, more than 60% percent of WorldatWork members surveyed said incidental bonus programs "positively affect employee engagement, motivation and satisfaction."
Dive Insight:
Employers are always on the lookout for new ways to reward employees as merit budgets remain stagnant. And WorldatWork has seen an increase in organizations using all four incidental bonus programs, compared to 2010. Six years ago the majority of organizations were using just a single program.
Other survey results found that 32% of employers use all four types of incidental bonuses, while 10% have no such programs in place, 55% budget for their spot bonus programs, and 44% budget for referral bonuses.
SHRM also cited research from the Korn Ferry Hay Group that found 90% of employers surveyed reward employees in alternative ways, including spot cash bonuses, career development or training program access, bonus paid time off, and other perks. Also, within the next year, 71% plan to increase alternative reward options.
The research reflects the idea that cash rewards today are no longer tied to the non-dynamic traditional periodic base salary increase or incentive.
