By Ashton Jackson -
CNBC
Many companies are struggling right now, with inflation problems and layoffs making headlines in recent weeks.
But that hasn't stopped employees from hoping for extra pay.
In fact, 67% of workers say they would quit or consider quitting if they don't receive a vacation bonus this year, according to new research from Skynova, an online billing company for small businesses, which surveyed more than 1,800 employers and companies. staff.
According to the Skynova report, 98% of workers who received extra pay in 2021 stayed with the same company this year.
Now, companies that don't offer bonuses may lose talent, says Joe Mercurio, a representative for Skynova.
Employees are more likely to stay with companies if they receive bonuses.Getty Images
“Many business owners are experiencing tax anxiety in this economic climate, but not giving bonuses could ultimately backfire,” Mercurio told CNBC Make It. “With job postings outnumbering job applicants two Together, employees have the power and expect to be rewarded for their performance and loyalty.
[The minimum wage will go up in January 2023 in 21 states and 41 counties and cities]
Here are the odds employees will receive bonuses this year, and what they might receive instead.
Deciding Factors for Premiums
“Vacation bonuses are one of the most common ways for employers to express appreciation for the hard work put in by their employees throughout the year,” says Mercurio.
But hard work isn't the only deciding factor.
According to the report, nearly 50% of companies say that employee seniority plays a role in deciding who gets a bonus.
Other factors: 41% consider whether or not the employee has children, 39% look at the quality of their work, and 25% rate how much they like the employee personally.
Freelancers get the
upper
hand when it comes to holiday bonuses, with companies being 34% more likely to award them over contractors.
Smaller companies appear to have more leeway for premiums this year.
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“Smaller companies have fewer employees, so they are more likely to be able to reward them with bonuses,” Mercurio says.
“Employees at small companies are 51% more likely to think they will receive extra vacation pay this year than employees at larger companies.”
Alternatives to premiums: Pizza parties, gift cards...
Entrepreneurs who can't offer bonuses this holiday season are finding creative—and more affordable—ways to show their appreciation.
48% of employers offer their workers pizza instead of bonuses, 43% gift cards, 33% Christmas parties and 31% pastry products.
Team building activities (10%), thank you notes (14%), and extra free time (14%) are less popular alternatives with employers, but they are still a token of appreciation for hard work and employee contributions.
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Even if you don't receive a financial reward this year, Mercury says to keep hoping: They won't be gone forever.
“Christmas bonuses go a long way to retaining employees, so they're not likely to go away anytime soon,” he says.
“Employees want to feel appreciated, and more than 92% of employers who gave vacation bonuses in 2021 say it improved productivity.”
