Many companies are struggling right now, with inflation issues and mass layoffs making headlines in recent weeks. But that hasn’t stopped employees from waiting for holiday pay.
According to new research from Skynova, an online invoicing company for small businesses, which surveyed more than 1,800 employers and employees.
A whopping 98% of workers who received a bonus in 2021 stayed with their same employer this year, according to Skynova’s report. This year, companies that don’t offer bonuses risk losing talent, says Joe Mercurio, a Skynova representative.
“Many business owners are experiencing tax anxiety in this economic climate, but withholding bonuses can ultimately backfire,” Mercurio told CNBC Make It. “With job openings outnumbering job seekers 2 to 1, employees are empowered and expect to be rewarded for performance and loyalty.”
Here you can see how likely it is that employees will get holiday pay this year – and what they could get instead.
Determinants of premiums
“Holiday bonuses are among the most common ways for employers to express their appreciation for their employees’ hard work throughout the year,” says Mercurio.
But hard work is not the only determining factor.
According to the report, nearly 50% of employers say employee seniority plays a role in deciding who receives a bonus. Other factors: 41% take into account whether the employee has children or not, 39% look at the quality of their work and 25% assess how much they personally like the employee.
Freelancers have the upper hand when it comes to holiday bonuses, with companies 34% more likely to give them one than contractors who aren’t typically self-employed.
Smaller employers appear to have more leeway on bonuses this year.
“Small businesses have fewer employees, so they’re more likely to be able to reward them with bonuses,” says Mercurio. “Employees at small businesses are 51% more likely to believe they will receive a holiday bonus this year than employees at large businesses.”