Despite economy, nearly two-thirds of companies planning year-end bonuses
CHICAGO, December 10, 2009 – As the economy struggles to crawl out of the worst recession in decades, many companies remain focused on containing costs. However, one new survey shows that, despite continued worries about costs, 64 percent of employers are planning to hand out holiday bonus checks this year.
The survey of approximately 100 human resource executives conducted in November by global outplacement consultancy Challenger, Gray & Christmas, Inc. suggests that while companies are not quite ready to accelerate hiring, they are cognizant of the potential to lose high performing workers when the job market begins to improve and job creation gains momentum.
The percentage of companies awarding holiday bonuses this year represents a marked improvement over 2008, when 54 percent of companies planned to give bonuses. Not only are more employers planning to give bonuses this year, but some are planning to give bigger checks. Eight percent of those polled said their companies were increasing the size of bonus checks. Last year, none of the companies planning bonuses were giving bigger ones.
While the survey shows an overall increase in the percentage of companies awarding bonuses, it also demonstrates the impact that the recession has had on many companies. Sixteen percent of respondents said that, while they awarded bonuses in 2008, they did not plan to do so this year. That is up from 13 percent of companies that saw the cancellation of bonuses from one year to the next.
Another four percent of companies planned to give smaller bonuses than a year ago, which the same percentage who said as much in the 2008 survey.
“Companies are not quite ready to ramp up hiring, but they are beginning to see the light at the end of the tunnel. While most can probably justify postponing bonuses another year, there are growing concerns that job market improvements in 2010 could bring an exodus of workers. Companies are also sending a message that we appreciate that this has been a tough year for everyone, and that the workers’ part in ensuring continued survival is recognized,” said John A. Challenger, chief executi
