Three-fourths of professionals would consider leaving if they don’t receive bonus

Clark Griswold’s boss in “Christmas Vacation” learned the hard way what can happen when employees don’t receive expected bonuses. Bonuses are important recruitment and retention tools in the current economy.

Nearly 3 in 4 professionals said they will seriously consider leaving their current job if they miss out on a year-end bonus this month, a new survey from the Robert Walters Group, a professional recruiting organization, found. More than 44% expect a bonus of between 10% and 30% of their annual pay at the end of January.

“It is still a talent-short market, so attracting and retaining the best people is without a doubt a challenge we will continue to see in the new year,” said Robert Moseman, associate director of Robert Walters New York. “A year-end bonus remains a crucial retention tool, influencing almost 4 in 5 employees’ career plans. It serves as recognition and reward for employees’ dedication and contributions, showcasing a sense of appreciation. It also helps with motivation for the following year — when people feel appreciated, they are more committed to continuing the hard work to reap the benefits in the years to come.”

Nevertheless, more than half of employees have resigned themselves to not expecting a bonus for their hard work in 2023. Employers may find it is more expensive to recruit, hire and train new employees than to reward existing ones.

“Understandably, many companies have had to reduce costs in what has been a turbulent economy,” Moseman said. “However, companies should take an important note that it costs around 6 to 9 months of an employee’s salary to replace them when they are gone. So when you put it like that, a bonus is a much smaller cost than said employee leaving.”

In addition to annual bonuses, the survey found that professionals also look for:

• Competitive salaries, 38%;
• Flexible work arrangements, 26%;
• Positive work-life balance, 25%; and
• Good development opportunities, 11%.

Related: Raises are getting smaller, and fewer employees are receiving them

“2023 was a tricky year to navigate for many organizations, with costs being heavily monitored,” Moseman said. “A holistic approach to employee strategies, incorporating more than just monetary benefits, is vital in securing and nurturing a strong workforce. Eighty-one-percent of professionals have reported that they will be looking at job alternatives in the new year, so it’s vital to ensure you’re doing what you can to maintain an attractive and competitive employee offering.”