– Training and Development Tops Wish List for Other Ways to Receive Incentives Besides Just Cash or Stock –
As professionals head into the new year, there is mixed expectations on the amount they will receive for their hard work and accomplishments in 2019. That’s according to a new survey of professionals by Korn Ferry
The majority (88 percent) of respondents say they expect to receive a 2019 bonus. Forty percent said it will be larger than their 2018 bonus, 39 percent say it will be the same size as their 2018 bonus and 21 percent said it will be smaller than last year.
Nearly half (49 percent) say their bonus is tied directly to their individual performance, and 81 percent say their bonus is tied to the performance of their teams and the organization overall.
“To avoid adding to fixed costs with large annual salary increases, companies are regularly relying instead on bonuses to reward employees for superior performance,” said Don Lowman, Korn Ferry’s Global Leader, Rewards and Benefits Practice. “CEOs are quite willing to pay for solid results, but only if those results are attained.”
While the vast majority (85 percent) of respondents say they understand how bonuses are allocated in their organization, only a slight majority (59 percent) agree that the bonus allocation process is fair.
“Our research shows that increasingly, employees are talking with their colleagues about how much they make, including the size of their bonus,” said Lowman. “That’s why bonuses need to be structured in a fair and transparent way that focuses on objective performance metrics supported by a management process that is understood and accepted.”
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While 97 percent of respondents say they receive their bonuses via cash, there are other forms of differentiated rewards that employees would like to receive. The largest percentage of respondents (30 percent) say training and development opportunities top their list, and 27 percent cited a paid vacation.
“While bonuses are a critical part of total compensation packages, leaders must also look at all of the ways employees are rewarded, including development and advancement opportunities, meaningful work, an energizing work climate, health and wellness benefits, a competitive base salary and paid-time off,” said Lowman.
Korn Ferry is a global organizational consulting firm. Work with clients to design their organizational structures, roles and responsibilities.