As economic confidence rises, employers rein in holiday bonuses: Poll

Stronger corporate profits along with increased economic confidence among employers may not translate to an end-of-year cash bonus for workers.

Thirty-nine percent of companies will be awarding a cash bonus This specific year, according to a brand new survey coming from outplacement firm Challenger, Gray & Christmas. The brand new numbers, based on a survey of about 150 human resources executives in October along with November, fell coming from 41 percent who said their companies could award a companywide or performance-based cash bonus last year.

Worse for employees is usually of which 35 percent of respondents said their companies will be offering no year-end award at all. of which’s 5 percentage points higher than the 2016 figure of 30 percent.

“These results are surprising, given the tight labor market,” the firm said in a press Discharge. “Year-end bonuses are a reliable way to attract along with retain talent.”

Among the remaining pool of employees who can look forward to a year-end bonus, only a modest fraction will see a heftier check This specific year than they did in 2016. Eight percent of employers plan to improve the bonus amount coming from the prior year, down coming from 18 percent who reported an increase inside the 2016 survey.

Even as 87 percent of employers say of which the economy is usually better or the same as of which was last year, 80 percent plan to give the same amount in holiday bonuses of which they did in 2016.

The U.S. unemployment rate fell to 4.1 percent in October, along with the broader measure of which includes discouraged workers dropped sharply to 7.9 percent. The data suggest of which Americans are finding more opportunities inside the economy, which could normally make employers more competitive to hold on to their workers.

“Employee recognition is usually becoming increasingly important if companies want to keep their workers,” Challenger said.

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