COMP NEWS – A new survey has revealed that nearly two-thirds of employees would quit or consider quitting if they didn’t receive an expected holiday bonus.

Many businesses are struggling right now, with inflation woes and mass layoffs making headlines in recent weeks. But that hasn’t stopped employees from expecting holiday bonuses.

In fact, 67% of employees say they would quit or consider quitting if they don’t receive a holiday bonus this year, according to new research from Skynova, an online invoicing company for small businesses, which surveyed over 1,800 employers and employees.

A whopping 98% of workers who received a bonus in 2021 stayed with their same employer this year, Skynova’s report found. This year, companies that don’t offer bonuses may lose talent, says Joe Mercurio, a representative from Skynova.

On the employer side of things, bosses seek to give employees with longer tenures better bonuses. Many also take certain life factors, such as the size of an employee’s family, into account when determining bonus compensation.

Nearly 50% of employers say employee tenure plays a role in choosing who gets a bonus, according to the report. Other factors: 41% take whether or not the employee has children into consideration, 39% look at the quality of their work and 25% assess how much they like the employee personally. 

Freelancers have the upper hand when it comes to holiday bonuses, with companies being 34% more likely to give them one over contractors, who usually aren’t self-employed.

Less sizeable employers seem to have more wiggle room for bonuses this year.

“Smaller businesses have fewer employees, so they’re more likely to be able to reward them with bonuses,” Mercurio says. “Employees at small businesses are 51% more likely to think they’ll receive a holiday bonus this year than employees of larger businesses.”

Employers are finding other ways to give bonuses, such as pizza parties and gift cards. These are far less popular choices for employee retention.

Employers who can’t offer bonuses this holiday season are finding creative — and more affordable — ways to show their appreciation.

Some 48% of employers are offering their workers pizza parties in lieu of bonuses, while 43% are handing out gift cards, 33% are throwing holiday parties and 31% are offering baked goods.

Team building activities (10%), thank you notes (14%) and extra time off (14%) are less popular alternatives for employers, but still show recognition for the hard work and contributions employees have displayed. 

To read more about retaining employees with holiday bonuses, click here.

For more Comp News, see our recent posts.