Many firms are scrapping year-end cash awards in favor of pay for performance and other approaches, Hewitt Associates finds.
By Garry Kranz Comments 0 | Recommend 0
Holiday Handouts: Holiday bonuses are a thing of the past. Nearly two-thirds of
organizations will not offer special holiday or year-end bonuses to employees in
2007, continuing a trend that has grown in recent years, according to HR
consulting firm Hewitt Associates. Of the 350 companies surveyed by Hewitt, 53
percent said they have never offered a holiday bonuses. About 10 percent of
companies have torpedoed such measures in favor or more strategic approaches,
primarily pay for performance. Companies that continue to rely on bonus programs
use different forms of compensation, with 42 percent offering gift cards, edging
out cash awards (41 percent) as the preferred option. One-quarter give employees
seasonal food gifts, while another 20 percent allow them to select items from
gift catalogs.
Workforce Management contributing editor Garry Kranz is based in Richmond, Virginia. E-mail editors@workforce.com to comment.
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