As 2022 comes to an end, bonuses are on the minds of employers and employees alike — but fewer companies will be doling them out this year. according to a study by global human resource consulting firm Robert Half International Inc.
“Don’t take this area lightly because the job market is still good. Compensation is king to the individual, and it's a primary concern to most employees,” said Paul McDonald, senior executive director at Robert Half International Inc. “There is a lot of opportunity out there.” That includes company leaders giving frequent town halls, answering questions honestly and giving employees a chance to ask questions, McDonald said, something that employees appreciate and can lead to better morale and better loyalty to the company.
That way, the employee can ask any questions and the manager can lay out the reasoning behind the bonus.In an era where big companies are handing out giant-size bonuses, rolling out big perks and in general making it harder for smaller businesses to keep pace, McDonald said employers who feel their bonus is inadequate can offer other rewards that come at little or no cost.
While it may seem awkward to be so explicit, McDonald said it's OK to frame it as a celebration of an unexpectedly good year.If the company cannot afford to pay someone more or offer a bigger bonus at their current level, it might be time to promote them if there is a position open. “And what are your reasons as an owner, as a manager, as a leader, what are your motivations for demanding people come back into the office? History shows that if you demand too much with the labor market [the way] it is right now, you will lose them,” McDonald said.