Christmas Cheer: Despite economic jitters, many companies are trying to be
charitable to employees during the Christmas holidays. Consulting firm Hewitt
Associates, in a recent holiday survey, says 42 percent are offering holiday
bonuses, with more than half that number doling out cash awards. Hewitt surveyed
more than 160 organizations.
On average, Hewitt says cash-giving companies will award $863 per employee.
Companies cite various reasons for the bonuses: to show appreciation (57
percent), build good will or employee morale (18 percent), to maintain tradition
(12 percent), or as incentive for employees to improve business results (8
percent). Another 42 percent of firms will rely on gift cards, while 16 percent
say they will provide gifts of food, to reward employees. Nearly three-quarters
of companies (71 percent) plan to throw holiday parties despite the economic
malaise, mostly to recognize and thank their workers. One in five companies will
spend between $10,000 and $25,000 on the frivolity.
Hewitt notes that average pay raises will fall below 3 percent in 2009,
nearly one full percentage point from 2008. In response, variable pay will form
a “bigger piece of employees’ overall compensation package, particularly as base
pay rates continue to steadily decline.”
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