Why Cash Is Not Always King For Rewarding Employees

For employers who believe that money is the only reward that employees value, they may want to think again.  The following post offers more information.

Employers may think giving their workers cash rewards is the best way to keep them happy, but it turns out, its those non-financial awards that lead to loyalty and productivity among employees.

“Cash rewards don’t have a long lasting effect,” says Susan Heathfield, About.com Guide to Human Resources. “Most people fritter it away and don’t spend it on something tangible or significant in their lives and as a consequence its impact doesn’t last.”

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Why Cash Is Not Always King For Rewarding Employees

72% of Employers Offering Year-End Bonuses, Up From 53% in 2011

As the nation’s economy continued to improve in 2012, so did employers’ generosity when it comes to rewarding worker contributions to success.  Results of a new survey show that 72 percent of employers plan to offer some type of year-end bonus this year, up from 53 percent a year ago.

John Challenger of Challenger, Gray & Christmas

The survey of human resources executives conducted by global outplacement consultancy Challenger, Gray & Christmas, Inc. found that nearly 28 percent of employers will hand out bonus checks based on the company’s annual performance.  Another 17 percent said their companies will award bonuses to a select group of employees based on individual performance.

The results of the non-scientific survey were based on approximately 100 responses to an e-mail poll distributed in November.  Among those responding, only 21 percent said no bonuses would be distributed this year.  In contrast, the 2011 survey saw more than 43 percent say no bonuses would be handed out that year. Continue Reading

46% of Employers Giving Holiday Bonuses This Year

Drawing of Scrooge courtesy of Shutterstock

The scrooge economy appears to be loosening its grip, as a new study shows companies plan to offer more perks (bonuses, parties, gifts) than last year. The national study was conducted for Careerbuilder by Harris Interactive© from August 13 to September 6, 2012 and included 2,494 hiring managers and human resource professionals and 3,976 workers across industries and company sizes.

Bonuses: Forty-six percent of employers expect to give their employees holiday bonuses this year, up from 40 percent last year and 33 percent in 2010. Nearly one in five of them (19 percent) plan to provide a larger bonus than last year. Continue Reading

83% of Employers Offer Merit Pay Increases to Improve Retention

As the job market slowly continues to open up, more employers are seeking ways to attract and retain the most valuable talent, and many are looking to rewards systems to facilitate this process.  The Compdata Surveys BenchmarkPro 2012 survey results found 82.8 percent of employers offer merit increases as one of the many systems used to reward employees. The average merit increase budget reported for 2012 was 2.7 percent, with 2.8 percent projected for 2013.

Bonuses are a popular reward option, as they are offered by 67.6 percent of employers surveyed. Nearly 40 percent of organizations use incentive pay, compared to spot incentives at 23.6 percent. Skill-based pay is utilized by 12.6 percent of survey respondents and key contributor rewards are used the least, 4.9 percent. Continue Reading

43% of Employers Do Not Award Year-End Bonuses

In an era of tighter cost controls, the tradition of the year-end bonus or gift may be fading, at least beyond the confines of Wall Street. Roughly 43 percent of human resources executives in a new survey said their companies do not award year-end bonuses, perks or gifts to employees. That is up from 2007, when a similar survey found that 28 percent of companies never award year-end bonuses.

The survey released Wednesday by global outplacement consultancy Challenger, Gray & Christmas, Inc. found that among the 53 percent of companies that do award bonuses, half give employees either a non-monetary gift or a nominal monetary award valued at less than $100. The results of the non-scientific survey were based on approximately 100 responses to an e-mail poll distributed in November.

Of the remainder awarding some type of year-end bonus, 31 percent give all employees a monetary bonus based on the company’s overall performance, while 19 percent give bonuses only to selected employees based on the individual’s performance. Continue Reading

Bonuses Rising In Many Firms, Survey Shows

Some employees could see bonuses this year.  Maybe you are one of them.

Bonus checks may be a little bigger this year, a Robert Half survey suggests. Thirty percent of executives whose companies awarded bonuses last year said they plan to give higher bonuses this time around. Human resources (HR) managers were most optimistic about increasing bonus levels in 2011 (42 percent), followed by technology executives, at 25 percent. Only 14 percent of those interviewed expected smaller bonuses than last year. Continue Reading

Creative Ways To Pay Your Interns

Lately, there has been a lot of buzz about the ethics behind hiring interns for unpaid positions. If you decide that you want to hire interns for unpaid positions then you must be able to pass the Department of Labor’s test for unpaid interns. However, if you decide that you want reward your interns for their work, then there are many more ways to pay them instead of just a salary. Some of the best alternative payment methods that many small business owners use are bonuses, perks, and training. Continue Reading

I Have No Gift to Bring: How Employers Can Still Reward Employees When Money for Bonuses Isn’t Available

In these tough economic times, many companies have had to maintain or cut back on employee bonuses or find alternative ways to treat their employees this holiday season. In her article for Respectful Workplace, “Creative Ideas for Rewarding Your Employees,” Melanie Sklarz cites a survey done by CareerBuilder.com and an article in the Wall Street Journal as sources for her information.
It’s a good idea for employers who can’t give monetary gifts to their employees this year to find a way to show them that they are appreciated. Not only does rewarding employees for their loyalty and dedication help them, it helps the company, too. Top employees can’t be wooed away to better jobs by recruiters from other companies if they feel valued where they are.
According to the Wall Street Journal, these are some of the alternative ways that employers can show their appreciation:
“Give extra paid time off. Maybe you can’t afford to lay down $500, but you might be able to spare an employee for an extra day or two.
Feed them a feast. One lunch or dinner isn’t too budget-breaking, and many employees still appreciate time to catch up and network with colleagues socially – even if an open bar and DJ isn’t involved. It could be a basic catered lunch or, if that’s still too pricey, even an employee potluck.
Think bare essentials. In bad economic times when many are scraping by financially, often bare essentials like gas or food are much appreciated gifts. Think about the possibility of giving employees a gas card or even a fruit basket.”
The holiday season isn’t ended, yet, so there’s still time for employers to come up with some innovative ways to retain their best employees. And it’s especially important for employees who recently started entry level jobs and students gearing up for spring internships to understand that although money is tight this year, employees and interns are still valued and their hard work is greatly appreciated.